Jellyfish’s 2025 State of Engineering Management report shows AI adoption in software engineering has surged, with 90% of teams using AI coding tools, up from 61% in 2024. Sixty-two percent report at least a 25% boost in developer velocity, and 81% expect AI to handle a quarter of today’s human work within five years. GitHub Copilot leads tool adoption, but leaders face challenges in scaling, maintaining quality, and balancing budgets as 23% fund AI from headcount reductions. While offshoring grows, burnout remains high at 46%. The report emphasizes measuring AI’s impact and aligning engineering metrics with business goals.

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