AI-driven software delivery reshapes Agile practices worldwide
Digital.ai has released the 18th State of Agile Report, documenting a significant shift towards artificial intelligence in software delivery and highlighting trends and pressures shaping Agile practices in global enterprises.
The report, which draws on responses from nearly 350 participants-primarily Agile coaches and consultants from organisations with over 20,000 employees-shows that AI is now regarded as central to how software is planned and delivered. The research points to what Digital.ai is calling the Fourth Wave of Software Delivery, a stage in which intelligent, agentic systems are playing an increasingly autonomous role across the software lifecycle.
AI at the centre
The findings indicate that over the past three years, AI has expanded from experimental use to being present throughout enterprises. Digital.ai describes this new era as one where autonomous AI systems are no longer just supporting teams, but also reasoning, deciding, and acting autonomously to improve efficiency, flow, and quality at scale.
"True Agility has always required a holistic people, process and technology approach. The rise of AI and Agents both within the Agile Planning space and across the software delivery lifecycle marks a new chapter in how we plan, build, test, deliver and monitor software. This year's report arrives at an extremely dynamic time, offering unique insights into how Agile is quickly evolving in this Fourth Wave."
This quote from Derek Holt, Chief Executive Officer of Digital.ai, underscores the depth of the transition underway in global software delivery practices.
Business impact pressures
The survey highlights that 76% of respondents are experiencing growing pressure to demonstrate the return on investment (ROI) of Agile initiatives, and this intensified focus is influencing investment and role allocation across organisations. While 41% have increased Agile spending over the last two years and 74% have adopted hybrid or customised Agile models, only half of those surveyed feel confident in their ability to deliver reliably and maintain accountability.
Teams report being required to do more with less (79%), accelerate innovation (77%), and adapt swiftly to organisational change (78%). The research reveals a gap between expectations and execution, with almost one-third attempting to directly link Agile practices to measurable business outcomes.
Adapting Agile
The report asserts that Agile practices are not fading but, rather, evolving rapidly to become predictive, data-driven, and responsive alongside growing AI use. Notably, 29% of respondents report new accountability for connecting Agile work to business outcomes, and 26% influence wider product and portfolio planning. The main yardstick for success remains customer satisfaction (52%), followed by efficiency and cost reduction (40%).
AI adoption has risen significantly, from 68% to 84% of surveyed organisations, with 41% deploying AI tools in a coordinated manner across their teams. A separate trend highlighted in the report is the increase in Agentic AI systems-technologies that autonomously make decisions and coordinate workflows-which are now being applied to process execution, risk detection, governance, and planning.
However, this rapid implementation outpaces governance developments, as only 49% have guardrails in place to manage the risks associated with greater automation and autonomy.
Agentic Agile Planning
Digital.ai introduces the term 'Agentic Agile Planning', describing a model where human teams collaborate with AI agents to anticipate risks, improve decision-making, and continuously adapt throughout the software delivery lifecycle. This model, according to the report, positions organisations for "enterprise-wide transformation" by connecting technology investment with measurable business impact.
"AI without reliable data is just acceleration without direction. When organizations invest in measurement, governance, and leadership alignment, AI becomes a force multiplier for Agile - making work more visible, decisions smarter, and business value more tangible."
This quote from Holt further emphasises the importance of data quality, leadership support, and governance to leverage AI effectively within Agile frameworks.
Survey context
The 18th annual State of Agile survey underscores the scale of these shifts, drawing primarily from respondents within very large enterprises. The findings point to a future in which both Agile and AI are not only coexisting but being closely integrated, with significant efforts being made to tie strategic, planning, and execution activities to visible business results.
As the report documents the evolution of Agile in the context of rising AI adoption, it also points to the critical need for governance to ensure that acceleration does not come at the cost of reliable direction and risk management.
