UK leads Europe in adoption of agentic AI for software gains

New research from OutSystems, in collaboration with KPMG and CIO Dive, has found that the adoption of agentic AI is fast becoming a strategic priority among software executives, with a significant majority already developing or planning to develop custom AI agents.

The report, which gathered survey responses from 550 software executives globally - including the UK - explores the trends shaping software development and digital transformation across sectors such as IT consultancy, manufacturing, banking, and insurance.

Agentic AI in the spotlight

According to the report, 93% of surveyed software leaders are already developing or planning to develop their own agentic AI systems. These developments are influencing increased developer productivity, improved software quality, and new workforce roles.

UK organisations are at the forefront of this shift within Europe, with 47% actively integrating agentic AI into applications and workflows. This places the UK above the European average of 40%, and ahead of France and Germany, though adoption rates are higher still in North America (50%) and Asia (60%).

Business value pressures and automation

The research highlights that current IT leaders are under considerable pressure to deliver business value with limited resources. Agentic AI is being introduced to address longstanding challenges, such as fragmented IT tools and data silos, by enabling large-scale process automation and more personalised digital experiences. Organisations expect agentic AI to facilitate seamless data access while supporting compliance, security, and governance needs.

"The software development lifecycle is undergoing a significant transformation as organizations increase AI investments to maintain their competitive edge. Blending AI with development tools enables IT leaders to manage this shift effectively and securely," said Woodson Martin, CEO of OutSystems. "In a near future, AI agents acting as highly specialized teams will continuously monitor business needs, identify opportunities, and proactively refine software solutions, allowing developers and business leaders to play a more creative role and focus on strategic priorities. This report underscores how AI advancements are reshaping traditional roles and unlocking opportunities for innovation and collaboration between humans and technology."

Productivity gains and new roles

Over two thirds of respondents reported increased developer productivity and higher software quality attributed to agentic AI, through fewer software bugs. The report also found that 62% of executives saw improved scalability in development efforts, while 60% reported more efficient testing and quality assurance. These improvements are perceived as enabling developers to focus more on complex challenges and collaboration with business leaders, thus fostering workforce transformation.

Agentic AI is expected to reshape workforce skills across organisations. Nearly seven in ten software leaders (69%) anticipate the creation of new, specialised roles including prompt engineers, agent architects, and governance leads. Additionally, 63% believe that AI will drive substantial upskilling or reskilling within their existing development teams.

Adoption trends and priorities

The research found that 46% of software executives are actively integrating agentic AI into applications and workflows, with another 28% piloting new solutions. Customer service is the leading area for AI agent deployment, with 49% of respondents planning to use agents for support tasks such as autonomous handling of inquiries. Less emphasis is currently being placed on AI-augmented solutions for product development, sales and marketing, supply chain management, human resources, or finance.

The drivers for AI investment outlined by more than half of respondents include customer experience improvement (56%), automation of routine development tasks (55%), faster software development cycles (54%), and the acceleration of digital transformation (53%).

Governance and technical debt

Significant challenges remain as agentic AI adoption increases, particularly around governance, security, and transparency. A total of 64% of executives note these as concerns, especially as the reliability of AI-generated decisions comes under scrutiny. Additionally, 44% point to a proliferation of AI tools, resulting in increased technical debt and greater complexity in oversight.

"A lot of organizations started with pilots a year ago or even prior to that, but now they're starting to see real efficiency gains in areas like code generation and application testing," says Michael Harper, Managing Director at KPMG LLP. "Those activities are giving organizations more confidence in using these tools and helping them to move forward."

The report's findings suggest that the expansion of agentic AI will drive further changes in workforce structure, upskilling, and the secure scaling of digital initiatives over the coming two years. Organisations across the UK and globally appear prepared to invest further in AI technologies as they pursue greater efficiency and innovation.