Scriptly Helps Pharmacies Identify Trends in Real Time with Reveal
Top Software Development Challenges for 2026
AI is accelerating productivity, yet global economic and geopolitical conditions are expected to constrain growth plans in 2026, according to the 2026 Reveal Top Software Development Challenges Survey. The research was conducted in December 2025 and includes responses from 250 senior technology leaders, including C-suite executives, CIOs, CTOs, VPs, IT managers, and directors responsible for software development and business intelligence across mid-market and enterprise organizations.
A Shifting Landscape for Technology Leaders
The survey finds that while many organizations delivered strong results in 2025, they now face mounting pressure from economic uncertainty, talent shortages, and the growing complexity of integrating AI, analytics, and embedded BI safely into software development workflows. These forces are reshaping how technology leaders approach investment, hiring, and innovation in 2026.
Biggest Business Pressures for 2026
Recruiting and retaining skilled technology workers is the top business challenge for 2026, cited by 50% of respondents. The rise reflects a growing gap between expanding AI initiatives and available technical expertise.
Incorporating AI (42%), limited resources (36%), and economic cutbacks (25%) follow closely, signaling that organizations are struggling to convert demand for innovation into execution capacity. While productivity and project activity increased in 2025, the data indicates that talent and operational constraints—not market demand—are now the primary limiters of growth.
Productivity Gains Collide With a Weakening Economy
More than half of organizations reported productivity gains in 2025, driven largely by AI adoption, embedded analytics, automation, and skill development. These gains confirm that productivity improvements are increasingly tied to technology enablement rather than workforce expansion.
However, 25% of organizations plan to reduce spending in 2026 due to economic pressure. Inflation, rising costs, and economic instability are the dominant factors, creating a disconnect between the technologies driving performance and the budgets required to sustain them.
Global Conditions Are Forcing a Strategic Reset
Economic and geopolitical conditions are already influencing execution decisions. More than half of organizations are delaying launches or expansions, while many are reducing innovation budgets or adjusting development team locations.
This shift reflects a move away from aggressive growth toward defensive optimization, where initiatives must demonstrate near-term business value to justify continued investment.
Software Development Challenges Intensify in 2026
The primary software development challenge in 2026 is integrating AI into the development process, cited by 57% of respondents. Security threats (49%) and data privacy and regulatory compliance (48%) closely follow.
Compared with 2025, these findings indicate that AI has moved from experimentation to operational pressure. Security, privacy, and governance are no longer peripheral concerns—they are now core design constraints across the development lifecycle.
Expansion Plans and the Central Role of AI
Despite economic uncertainty, AI remains the top expansion priority. 77% of organizations plan to increase their use of AI in 2026, reinforcing its role as the primary driver of productivity and efficiency.
At the same time, expansion goals are shifting toward measurable outcomes. Plans to increase revenue have doubled year over year, and organizations report renewed focus on new applications, market expansion, and modernization—signaling a move from adoption to commercialization.
Embedded Analytics and BI Momentum Continues
Embedded analytics and BI are now standard components of modern software operations. 76% of organizations already use embedded analytics internally, and 84% expect their focus on BI to increase in 2026.
Organizations are using analytics to support decision-making, identify trends faster, and improve productivity. A majority embed analytics directly into their products, with more organizations turning to vendor solutions than building in-house—primarily to reduce development time, cost, and internal team strain.
Conclusion
As AI, analytics, and embedded BI become more deeply woven into software products and workflows, the challenge shifts from adoption to sustainability. Organizations must balance innovation with security, governance, and execution capacity amid ongoing economic and geopolitical uncertainty.
The 2026 Reveal survey underscores a central reality facing technology leaders: AI and analytics are essential for competitive performance, but success will depend on how effectively organizations navigate talent shortages, security risks, and constrained resources in the year ahead.
About Reveal
Reveal is a developer-first embedded analytics platform that makes it easy to build beautiful, white-label analytics dashboards directly into your apps — no iFrames, no heavy lifting. Deliver self-service reporting powered by real-time data and enhanced with AI-driven insights. Reveal works in your stack, whether you deploy to the cloud, on-prem, or hybrid environments.
