Many Organizations Will Adopt Smaller Software Teams by 2029

Gartner projects that by 2029, 60% of organizations will implement smaller software engineering teams at scale, a significant jump from the 15% seen in 2026. “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. “The resources required to meet the growing demand for software and complex AI-enabled applications will outpace the efficiency gains from AI.”

As AI automates more routine technical tasks, engineers are increasingly able to focus on high-level innovation and problem-solving, leading to the rise of "tiny teams." “Tiny teams are not a cost optimization tactic,” said Camacho. “This is a restructuring of teams to best take advantage of both human and AI capabilities and strengths.” The size of these teams will vary based on product needs. “Today’s tiny teams typically have 4–5 members, but some require as few as 2–3, which will become more common as employee skills and AI capabilities mature,” said Camacho. “Most importantly, tiny teams should be small enough to stay nimble and effective, and big enough to promote diversity of ideas or alternate viewpoints.”

Supported by platform engineering teams, these tiny teams can concentrate on high-value work via automated workflows and self-service AI tools. These groups typically require versatile professionals, including a product manager, a UX/AX designer, and an AI-native software engineer. However, Gartner warns that leaders should not abandon the development of junior talent. “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,” said Camacho. The firm predicts that organizations cutting junior roles today will hollow out their future talent pipeline by 2028.