Companies Tap AI for Next-gen Application Development

Enterprises are adopting advanced low-code/no-code platforms with AI-enabled features to build more complex applications, ISG Provider Lens™ report says

Enterprises are making greater demands on low-code/no-code development platforms to build enterprise-grade applications tailored to their needs, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ global Next-gen ADM Solutions report finds that companies are seeking platforms with features including intuitive interfaces for non-technical employees and the ability to build complex, enterprise-grade software. Features enabled by AI support many of these capabilities.

“Enterprises expect low-code/no-code platforms to enable rapid innovation that keeps them competitive,” said Shafqat Azim, ISG partner and Americas lead, Digital Transformation. “They demand more flexibility, scalability and security, and technology is quickly advancing to meet those needs.”

AI can deliver benefits throughout low-code/no-code development cycles, allowing companies to automate decision-making and code generation, streamline query resolution and identify security vulnerabilities, ISG says. These capabilities, in turn, help enterprises incorporate AI and ML features in their applications. Generative AI (GenAI) is beginning to simplify the development process by creating visual elements based on developer preferences or descriptions, making it easier for non-technical employees to build applications.

Companies that use low-code development seek platforms with robust version control, project management and real-time collaboration features, the report says. Security and compliance are increasingly important, especially in tightly regulated industries, and enterprises expect low-code platforms to include data encryption, access controls and compliance with industry regulations.

Component-based architectures, which let users build applications by dragging and dropping pre-built modules, are becoming a key feature of low-code platforms, ISG says. Developers and users can create reusable components and share best practices, keeping these platforms adaptable over time.

“Low-code development is a boon to enterprise collaboration,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “IT professionals and business users are forming fusion teams to align business objectives with technical solutions.”

No-code platforms also have evolved to meet more complex requirements through recent advancements, including hybrid development capabilities, the report says. These features let enterprises extend and customize software with coding when needed, giving them more flexibility while retaining the benefits of no-code development.

The report also explores other low-code/no-code solution trends, including rising interest in self-healing application capabilities and the growth of ecosystems enabled by third-party integrations.

For more insights into the ADM platform challenges enterprises face, including the need for integration into existing systems, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ global Next-gen ADM Solutions report evaluates the capabilities of 43 providers across two quadrants: Low-code Development Platforms and No-code Development Platforms.

The report names Airtable, UiPath and Zoho as Leaders in both quadrants. It names Appian, Betty Blocks, Creatio, GeneXus (Globant), Kissflow, Mendix, Microsoft, Newgen Software, OutSystems, Pega and Retool as Leaders in one quadrant each.

In addition, Bubble and HCL Software are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

The 2024 ISG Provider Lens™ global Next-gen ADM Solutions report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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