60% of organisations to adopt smaller software engineering teams by 2029: Gartner

Artificial intelligence is changing the structure of software engineering teams, but not in the way many organisations expected. Rather than replacing engineers, AI is enabling smaller, cross-functional teams capable of delivering more complex work with greater speed and flexibility.

According to Gartner, 60% of organisations will adopt smaller software engineering teams at scale by 2029, a significant increase from 15% in 2026. The technology research and advisory firm says AI is redefining software engineering roles, changing team structures and creating demand for new skills instead of reducing the need for talent.

"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 the resources needed to meet growing demand for software and AI-enabled applications will continue to outpace productivity gains delivered by AI.

'Tiny teams' are about capability, not cost cutting

Gartner describes the emerging model as "tiny teams", where small, highly skilled groups work alongside AI tools to deliver products and features.

According to the firm, these teams are not designed as a cost optimisation measure.

Instead, they represent a restructuring of software engineering teams to better combine human expertise with AI capabilities.

Today's tiny teams generally consist of four to five members, although some organisations are already operating with two to three people. Gartner expects smaller team sizes to become more common as AI capabilities and workforce skills mature.

The firm said successful teams should remain small enough to move quickly while still being large enough to encourage diverse thinking and different perspectives.

These teams are also supported by platform engineering functions, which provide standardised workflows, automation and self-service AI capabilities, allowing engineers to focus on higher-value work.

Traditional roles are beginning to blur

As AI takes over more routine technical tasks, software engineers are expected to spend more time solving complex business and technical problems.

According to Gartner, traditional software engineering roles within tiny teams become increasingly fluid.

Rather than working within narrowly defined responsibilities, team members are expected to contribute across multiple functions, including:

• Understanding business objectives
• Product design and development
• User experience (UX) and agent experience (AX)
• Managing AI agents and AI-enabled workflows

The firm said a typical AI-native team includes a product manager, a UX or AX designer, and at least one AI-native software engineer, alongside other multidisciplinary contributors.

AI should not come at the expense of junior talent

While AI is changing how engineering teams operate, Gartner cautioned organisations against slowing recruitment of early-career professionals.

Camacho warned that reducing junior hiring could create long-term workforce challenges.

"Slowing junior-level hiring could lead to significant pitfalls, including inhibiting knowledge transfer, restricting the internal talent pipeline, and limiting recruitment to more expensive and competitive senior roles," she said.

Gartner predicts that by 2028, organisations relying on AI to eliminate junior software engineering roles will weaken their own talent pipeline, making it more difficult to build future engineering capability.

The message, according to the firm, is clear. AI should augment software engineering teams, not replace the next generation of engineers.

Software engineering enters a new phase

The findings reflect a broader shift in enterprise software development as organisations move beyond using AI solely as a productivity tool.

Instead, businesses are redesigning engineering teams around AI-native ways of working, with smaller teams supported by automation, platform engineering and intelligent software tools.

For technology leaders, the challenge is no longer deciding whether AI belongs in software engineering. It is determining how to structure teams that balance AI efficiency with human creativity, collaboration and long-term talent development.

As organisations accelerate AI adoption, Gartner expects software engineering to evolve towards leaner, multidisciplinary teams without losing sight of the importance of investing in future talent.