Artificial intelligence will fundamentally reshape software engineering teams over the next few years, with 60% of organisations expected to adopt smaller, AI-native software engineering teams by 2029, up from just 15% in 2026, according to Gartner.
The research firm says the rise of so-called “tiny teams” is being driven by AI’s ability to automate routine engineering tasks, allowing software developers to focus on product innovation, complex problem-solving and business outcomes rather than repetitive coding activities.
“AI is reshaping software engineering by redefining roles, reinventing teams and increasing, not reducing, demand for software engineers,” said Aliyah Camacho, Principal Analyst at Gartner. “The demand for software and increasingly complex AI-enabled applications will continue to outpace the productivity gains delivered by AI.”
According to Gartner, tiny teams are not intended as a cost-cutting exercise. Instead, they represent a structural shift in how organisations combine human expertise with AI capabilities to build software more efficiently.
While the exact composition will vary by organisation and project, today’s tiny teams typically consist of four to five members, although Gartner expects teams of two to three engineers to become increasingly common as AI capabilities mature. These teams are expected to remain small enough to be agile while retaining sufficient diversity of skills and perspectives.
The research highlights that AI-native teams will increasingly rely on platform engineering functions that provide standardised development environments, automated workflows and self-service AI tools, enabling engineers to concentrate on higher-value work.
Despite the growing role of AI, Gartner cautioned organisations against reducing investment in entry-level talent. The firm predicts that by 2028, organisations that use AI as a reason to reduce junior hiring will weaken their long-term software engineering talent pipeline.
As AI reshapes software development, engineers will be expected to take on broader responsibilities spanning product strategy, user experience, business objectives and the management of AI agents, making versatile, cross-functional skill sets increasingly important.
“Reducing junior hiring may appear efficient in the short term, but it risks limiting knowledge transfer, weakening internal talent development and increasing dependence on more expensive senior hires,” Camacho said.
Gartner expects organisations to increasingly build AI-native software engineering teams comprising product managers, user or agent experience designers, AI-native software engineers and other multidisciplinary roles as software development evolves alongside generative AI technologies.