How AI is redefining development in SaaS business.

In recent years, the tech industry has witnessed outstanding growth, and many companies, including ours, have enjoyed the benefits. But times are changing.
AI helping coders Senior developer working
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Artificial Intelligence will shift the balance in development teams

We're taking a fresh look at how we build our teams and spend our money in the SaaS industry. It's time to rethink the old ways and embrace new strategies for success.


Traditionally, the bulk of development budgets in SaaS companies has been allocated to software developers, typically around 80-90%. This left a meagre 10-15% for other critical roles such as QA, DevOps, and UX/UI design. This distribution, while commonplace, overlooks the significant contributions of these roles in creating a successful product.

Allocation of roles in software development

The integration of Artificial Intelligence in our workflows is a game-changer. We've observed internally that developers can increase their efficiency by up to 40% when fully utilizing AI tools. This efficiency gain suggests a potential shift towards smaller, more agile development teams. Such a change could free up budget resources, allowing for greater investment in roles previously considered a "luxury".


Example AI allocation of roles

QA's, devops and UX are no longer a luxury

Previously, the focus was on quickly adding as many features as possible. However this approach often ignored crucial aspects like design and reliability. Now, we're witnessing a significant change. The industry is realizing that aesthetics and smooth functionality are as vital as advanced features. 

It's becoming clear that positions such as QA, DevOps, and UX/UI design are not just luxury additions but are essential for creating stable, high-quality products.

Historically, when faced with the decision to add either another developer or a QA specialist to a team, the choice typically leaned towards the developer. However, this trend is evolving. SaaS products must stand out to survive. Users have become more discerning and are quick to switch to a competitor’s product if they encounter issues with performance or user experience. This reality highlights the necessity for SaaS products to be not just feature-rich but also well-crafted and reliable. 


Moreover, the increasing importance of security and privacy in the digital age cannot be overstated. Any breaches in these areas can severely damage a company's reputation. 

AI usage in a Software House

Our internal survey on AI usage in development shows that 41% of our developers use AI daily and 20% rarely use it. Users who frequently engage with AI find it highly beneficial, unlike occasional users who see little value. Moreover, 77% of our developers say AI boosts their performance. They praise AI for quickly providing solutions, generating code, assisting in unit test writing, and helping with refactoring. Yet, AI struggles with requirement analysis, comprehensive coding, complex calculations, creating efficient algorithms, interpreting results, and tasks requiring human interaction.

As the CEO of Amsterdam Standard, I recognize that while the AI trend might not directly benefit us now. However, we are prepared to adapt our business model and update our solutions to meet changing client needs. I believe this trend will lead to a more balanced allocation of time and budget, allowing for the development of products that are not just 80% ready but fully realized.
Written by: Leopold van Oosten, on January 26, 2024
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