Goodfirms Survey: 91% Of Software Companies Use AI To Cut Development Costs In 2026

The survey found that 90.6% of software development companies now use AI-powered tools and automation across the software development lifecycle, resulting in measurable reductions in development costs and improved operational efficiency.

According to the research, 61% of respondents expect AI to reduce software project budgets by 10–25%, making custom development increasingly accessible and affordable for startups and small- to mid-sized businesses.

Organizations seeking experienced technology partners can explore leading custom software development companies

AI Delivers Maximum Impact Across Key Development Functions

The survey shows that AI is delivering the most value in the following areas of software development:

• Documentation and reporting – 71.9%
• Testing and quality assurance – 65.6%
• Code generation and development assistance – 64.1%
• Project management and resource allocation – 54.7%

As automation accelerates coding and testing processes, many organizations are also turning to specialized AI development companies

About the Survey

The Goodfirms Custom Software Development Cost Survey 2026 is based on responses from 100+ global software development companies and provides a comprehensive overview of current industry pricing models, hourly development rates, and the growing influence of AI on development workflows and project costs.

The idea behind the research is to help startups, SMEs, and enterprises make informed decisions before investing in software development technologies and services this year.

Key Findings

• 90.6% of development teams have already adopted AI tools for coding, testing, documentation, and project planning.
• 56% of software companies charge hourly rates between $20 and $50, making custom development a cost-effective option for many businesses.
• Scope creep increases development costs by 10–25%, highlighting the importance of well-defined project planning.
• 66% of companies typically charge $30,000–$100,000 for small to mid-sized software projects.

The survey also revealed that software companies implementing AI capabilities and advanced integrations often price projects between $50,000 and $125,000. Meanwhile, organizations building large-scale software systems with advanced technologies, cloud infrastructure, and automation usually start projects at $100,000 or more, with enterprise-grade platforms often exceeding $200,000 due to higher complexity and longer development timelines.

With AI significantly improving testing automation, many organizations are increasingly working with specialized software testing companies

Global Outsourcing Trends Continue

To maintain competitive pricing without compromising quality, many businesses continue outsourcing development to regions such as Eastern Europe, Latin America, and Southeast Asia, where experienced engineering teams provide high-value services at competitive rates.

Companies looking to optimize development workflows and deployment pipelines can also explore trusted DevOps consulting companies

Likewise, organizations aiming to reduce operational costs often partner with experienced IT outsourcing companies

Industry Perspective

“The data confirms what we have observed since the onset of AI-it's no longer a futuristic add-on but a core driver of operational efficiency,” said Goodfirms.“Companies that have strategically integrated AI into their development pipelines are beginning to see real, bottom-line impact.”

Challenges Still Remain

Despite these efficiency gains, software development projects still face several cost pressures. The survey revealed that:

• 95.3% of companies cited project complexity as the top cost driver
• 79% said the technology stack significantly impacts project costs
• 72% reported that senior-level talent and cross-functional teams increase development expenses

Businesses and technology leaders can explore the full Goodfirms survey to gain a deeper understanding of custom software development costs in 2026, emerging pricing models, and the growing role of AI in shaping modern software engineering.

About Goodfirms:

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