Microsoft says AI is finally having a 'meaningful impact' on developer productivity – and 80% 'would be sad if they could no longer use it'

Researchers at Microsoft say AI is having a net positive effect on software development, with the technology “augmenting developers rather than replacing them”.

The claim follows the publication of a study examining the use of the technology amidst rising concerns over its impact on the workforce.

The use of AI in software development has become a source of “intense debate” in recent months, researchers noted, with some industry stakeholders suggesting it will ultimately replace developers and reduce entry-level opportunities.

“Some believe AI will soon replace entire categories of developer work, while others dismiss it as an overhyped distraction,” the study noted. “But amid all the speculation, one perspective is often missing: that of the developers who are actually using these tools”.

“To better understand how AI is reshaping the developer experience, we conducted a study that asked developers how AI tools are affecting their work,” researchers added.

A key focus of the study centered around how AI is impacting productivity across a range of metrics, using a framework known as 'SPACE'.

This refers to:

• Satisfaction
• Performance
• Activity
• Collaboration
• Efficiency

How AI is changing software development

According to Microsoft, the adoption of AI tools in software development is “no longer a niche experiment”, with the use of the technology now becoming the norm across the industry.

Three-quarters (75%) of developers told researchers they regularly use AI to complete tasks, for example. This, the study noted, highlights a “clear shift” in how development teams are integrating AI into their daily workflows.

“Among those who have adopted AI, usage is frequent,” the report stated. “64% of developers who use AI report using it at least once per week.”

Microsoft’s stats roughly align with alternative figures highlighting growing adoption rates among developers. Stack Overflow’s 2025 Developer Survey showed the use of the technology has surged over the last 12 months, with 84% of devs now using - or planning to use - AI tools.

This not only marked a significant jump from 76% in last year’s survey, but a third consecutive annual increase in adoption rates.

Notably, the seniority of developers doesn’t appear to have a major impact on adoption rates, with experienced devs only 4% less likely to be daily users compared to junior staff.

Organizational encouragement does have an impact on adoption rates, however.

Respondents who said their employer “actively advocates” for the use of the technology are “seven times more likely to be daily users than those who feel their company does not”.

Productivity gains are becoming clear

Productivity and efficiency gains have been key talking points for providers of AI developer tools over the last two years, and it’s worth noting that Microsoft itself has been among the most vocal proponents of the technology in this domain.

Among developers who regularly use AI in their daily workflows, 90% told researchers it makes them more productive. Similarly, 80% of developers said they “would be sad if they could no longer use it”.

“These results make it clear,” the study noted. “Developers who use AI believe it has a meaningful impact on their productivity.”

Exactly what constitutes “productivity” here is multi-faceted, however. Under the study’s SPACE framework, researchers said this “spans multiple dimensions” – from performance, efficiency, and task throughput, to job satisfaction and collaboration rates.

Regardless, using this framework, researchers said the signs remain positive and the technology is having a beneficial effect on teams. Among those actively using AI on a daily basis, developers said the technology improves productivity “across a wide range of dimensions”.

A significant majority (88%) said AI has improved their task throughput while a similar number (82%) revealed it has improved overall efficiency. Researchers said this aligns closely with “previous findings about the efficacy of Copilot to decrease the time it takes to complete coding tasks”.

While speed and performance gains were identified as key benefits, 71% said AI tools are helping them deliver better customer value. Almost two-thirds (62%) also revealed the technology is improving job satisfaction, largely due to the reduction of manual toil.

“These results suggest that, for those who use AI, it’s not just making them faster, it’s helping them feel more effective and more satisfied with their work,” researchers said.

“Previous research has shown a positive relationship between productivity and satisfaction , and it would appear that these results lend agreement to that.”

AI is isn’t quite improving cohesion

Microsoft said the impact of AI on collaboration “tells a more nuanced story”. For example, fewer than half (48%) of respondents said AI tools are actively improving their ability to collaborate with teammates.

This doesn’t mean that AI is harming collaboration, however. Indeed, researchers noted that very few developers reported decreases on this front while a “significant portion” remained neutral.

What is does suggest is that the role of AI within a team-based environment is still evolving, with teams unsure over how it can improve cohesion. Other findings on this front showed that AI is “changing the nature of interactions” within teams, suggesting tentative improvements.

“The engineering managers we spoke to reported fewer interruptions within their teams, as developers relied less on colleagues for quick answers to coding questions,” researchers said.

Overall, many senior software developers said the use of AI tools has actually improved the “quality and depth” of conversations and sparked new discussions over strategy.

“A VP of IT at a global supplier of technology and engineering systems explained that, because of ChatGPT, teams now spend more time ‘brainstorming about projects, ideas, and architectures’ and less time discussing ‘unnecessary’ coding questions,” the study said.

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