AI to Drive Shift to Smaller Software Engineering Teams by 2029: Gartner
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By 2029, 60% of organisations are expected to adopt smaller software engineering teams at scale, up from 15% in 2026, as artificial intelligence reshapes software development, according to research firm Gartner.
The company said AI is changing how software engineering teams are structured by automating routine technical tasks, allowing engineers to focus on complex problem-solving and innovation.
“AI is reshaping software engineering. It is redefining roles, reinventing teams, and fueling the demand for more software engineers, not fewer,” said Aliyah Camacho, Principal Analyst at Gartner. She added that demand for software and AI-enabled applications is expected to outpace the productivity gains delivered by AI.
According to Gartner, these “tiny teams” are not intended as a cost-cutting measure but as a way to combine human expertise with AI capabilities more effectively. While current teams typically consist of four to five members, some projects may require only two to three engineers as AI tools and workforce skills continue to mature.
The research noted that smaller teams should remain supported by platform engineering functions that provide standardised workflows, automation and self-service AI tools, allowing developers to focus on higher-value work.
Gartner also cautioned organisations against reducing entry-level hiring. It said tiny teams should still include junior talent to maintain knowledge transfer and build a sustainable talent pipeline.
The firm predicts that by 2028, organisations that use AI primarily to eliminate junior software engineering roles could weaken their future workforce by shrinking the pipeline of experienced engineers.

