As ROI pressure rises and AI adoption surges to 84%, early movers are establishing data foundations and governance guardrails to reconnect Agile investments to measurable business outcomes

Digital.ai, provider of the only AI-powered software delivery platform for the enterprise, today released its 18th annual State of Agile Report, the world’s longest-running and most trusted longitudinal study on Agile adoption.

Now twenty-five years after the Agile Manifesto reshaped how software is built, the 2025 report captures another major turning point: the rise of artificial intelligence as a catalyst for the Fourth Wave of software delivery, where AI is moving from a supportive tool to an orchestrator of the full delivery lifecycle.

Over the past three years, AI has moved from research labs into every corner of the enterprise, transforming how organizations plan, build, test, secure, and release software. Digital.ai defines this transformation as the Fourth Wave of Software Development and Delivery — an era where intelligent, agentic systems are becoming active participants in the software lifecycle. Rather than simply assisting teams, these systems can reason, decide, and act autonomously to improve flow, quality, and speed at scale.

The 2025 findings reveal that AI is refocusing organizations on Agile’s original intent: enabling rapid adaptation to change and delivering innovation that matters most to the business.

Key Findings

• ROI pressure is rising: 76% cite increased scrutiny on the business impact and ROI of Agile.
• AI adoption has surged: From 68% to 84%, with early adopters experimenting with agentic systems that act autonomously.
• Governance lags behind adoption: Only 49% have guardrails in place as AI adoption accelerates faster than oversight.
• Keys to success: 73% of respondents want stronger leadership support and clearer alignment between delivery work and business goals.

Agile at a Defining Moment

The 2025 State of Agile findings reflect a decisive shift: AI is now central to how software is envisioned and delivered. This evolution is driving enterprises to connect technology investments with measurable business outcomes and to adopt governance models that make data and decision flow transparent across the organization.

“True Agility has always required a holistic people, process and technology approach,” said Derek Holt, CEO of Digital.ai. “The rise of AI and Agents both within the Agile Planning space and across the software delivery lifecycle marks a new chapter in how we plan, build, test, deliver and monitor software. This year’s report arrives at an extremely dynamic time, offering unique insights into how Agile is quickly evolving in this Fourth Wave.”

Organizations that build these foundations first will be best positioned to transform AI from a productivity tool into a strategic driver of business performance.

The Pressure Is On

The 2025 findings reveal mounting pressure on organizations to demonstrate the ROI of Agile. While 76% of respondents say this pressure is reshaping investments and role assignments, only half feel they can deliver reliably and with accountability. Teams are being asked to do more with less (79%), accelerate innovation (77%), and respond swiftly to leadership and structural changes (78%).

At the same time, nearly one-third of organizations are working to connect Agile practices directly to measurable business outcomes — highlighting a critical gap between expectations and execution.

Agile Is Adapting

Agile continues to evolve to meet modern demands. Four key trends stand out:

• Investment holds steady: 41% increased Agile spending over the past two years, signaling continued confidence in Agile’s value.
• Flexibility is rising: 74% now use hybrid, blended, or homegrown Agile models.
• Roles are expanding: 29% of respondents are now accountable for connecting Agile work to business outcomes, and 26% are influencing product and portfolio planning — a shift from activity metrics to strategic impact.
• Focus is shifting to outcomes: Customer satisfaction (52%) remains the primary measure of success, followed by efficiency and cost reduction (40%).

The surprise this year isn’t that AI is spreading, but how far some organizations have already taken it. More than one-quarter of AI users are experimenting with Agentic AI—intelligent systems that autonomously make decisions and coordinate work across tools. Early adopters are applying these capabilities to workflow execution, risk detection, governance, and even planning. Agentic AI represents a shift from assistance to autonomy: agents that act, learn, and adapt within the guardrails teams define. Much like the first Agile pioneers two decades ago, these organizations are testing boundaries and shaping the next wave of innovation.

The Opportunity Ahead: The Era of Agentic Agile

AI adoption has surged from 68% to 84%, with 41% now implementing tools in a coordinated way across teams. Yet only 49% have governance guardrails in place, creating risk as automation advances faster than oversight.

As AI becomes more deeply embedded in enterprise workflows, Agile itself is evolving into what Digital.ai calls Agentic Agile Planning — a model where human teams and AI agents collaborate to anticipate risks, improve decision-making, and continuously adapt across planning, coding, testing, and delivery.

"AI without reliable data is just acceleration without direction," said Holt. "When organizations invest in measurement, governance, and leadership alignment, AI becomes a force multiplier for Agile - making work more visible, decisions smarter, and business value more tangible."

About the Survey

The 18th annual State of Agile survey, conducted by Digital.ai in 2025, gathered insights from nearly 350 participants — primarily Agile coaches and consultants from large enterprises with over 20,000 employees.

To read the full 18th State of Agile Report click here, or for previous editions, visit StateofAgile.com.

For more information about Digital.ai, visit Digital.ai.

About Digital.ai

Digital.ai is the only AI-powered software delivery platform purpose-built for the enterprise, enabling the world’s largest organizations to build, test, secure, and deliver high-quality software. By unifying AI-driven insights, automation, and security across the software development lifecycle, Digital.ai empowers enterprises to deliver innovation with confidence. Trusted by global 5,000 enterprises, Digital.ai is redefining how enterprises build better software in an AI-driven world. Additional information about Digital.ai can be found at digital.ai and on Twitter, LinkedIn and YouTube.

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The 2025 report captures another major turning point: the rise of artificial intelligence as a catalyst for the Fourth Wave of software delivery.