Software development and tech services in the cross-hairs as AI marches on
Forrester has warned that software development, business transformation and technology implementation are among the tech job categories most exposed to disruption from artificial intelligence, as AI tools increasingly automate work traditionally done by developers and consultants. The analyst firm's research suggests the impact will be uneven: infrastructure, data and AI, and identity/access/network security are positioned for clear growth, while other areas, including enterprise software, will be reshaped rather than wiped out, easing fears of a wholesale "SaaSpocalypse".
Application development and software tooling, such as low-code platforms, autonomous testing tools and content management systems, were flagged as sitting "directly in the path of genAI-code development" and thus especially vulnerable. IT services face similar pressure, with implementation work for Oracle, Salesforce, SAP and Workday all showing headwinds, and business process outsourcing tipped as the hardest hit, with testing and software development services likely to sell at reduced rates. Despite this disruption, Gartner has raised its 2026 global IT spending forecast to $6.37 trillion, up 14.2% year-on-year and higher than earlier estimates, driven partly by the tech industry's own AI investment, expected to grow 34.7% in 2026.
- Forrester says AI will hit software development and IT services hardest
- Infrastructure, data/AI and security markets seen as clear growth areas
- Gartner raises 2026 global IT spending forecast to $6.37 trillion
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Generative AI can produce code, test software and handle some routine technical tasks, work that has traditionally been done by developers and technology consultants. Forrester, a research and advisory firm, says this puts parts of software development and technology services at risk of change.
The effect is expected to vary across the industry. Infrastructure, data and AI, and security work are forecast to grow, while enterprise software is more likely to be reshaped than disappear; business process outsourcing, which companies use to handle work such as testing, may face stronger pressure.
This matters to technology workers and the companies that build or buy these services, as AI may alter the kinds of work needed and the prices clients pay. At the same time, forecasts point to rising overall technology spending, including investment in AI, so disruption in some areas is happening alongside expansion in others.
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The strongest fair case each way — we don't pick a winner.
The case for
Advocates of this shift argue that AI-driven automation of coding and routine tech-service tasks is a natural and welcome productivity leap, freeing skilled engineers from repetitive, low-value work such as boilerplate coding, testing and basic support tickets. They point to history's pattern of technological disruption ultimately creating new roles and industries, arguing that firms embracing AI tools now will deliver software faster and cheaper, benefiting consumers and businesses alike, while developers who adapt can focus on higher-value design, architecture and problem-solving work.
The case against
Sceptics and those representing affected workers argue that this disruption threatens the livelihoods of thousands employed in long-established tech service roles, many of whom built careers on skills that AI now performs cheaply and quickly, with little guarantee that displaced workers will find comparable new roles. They emphasise that the pace of change may outstrip the ability of individuals, training systems and labour markets to adapt, and warn that concentrating gains among firms deploying AI risks widening inequality while eroding the stability and expertise that underpinned the sector's reliability.