As AI transforms the organizational structure of software engineering, 'tiny teams' of four to five people are establishing themselves as a new operating model. Gartner predicts that the percentage of companies adopting small software engineering teams will quadruple from 15% in 2026 to 60% in 2029. The analysis suggests that this is an organizational restructuring aimed at the optimal combination of human and AI capabilities, rather than simple cost reduction.

Gartner released an analysis of this content on the 8th.

Aliyah Camacho, a principal analyst at Gartner, stated, “AI is redefining the role of software engineering, and the resources required to meet the demand for software and complex AI-based applications will exceed the efficiency gains provided by AI.”

Micro teams emerged in an environment where AI handled repetitive technical tasks, allowing engineers to focus on solving complex problems.

Gartner explained that while the typical size is currently 4 to 5 people, some companies operate with 2 to 3 people.

Analyst Camacho emphasized, “Micro-teams must be small enough to move agilely, yet large enough to offer diverse perspectives.”

The team composition includes skilled personnel such as product managers, user experience (UX) and agent experience (AX) designers, and AI-based software engineers.

Micro teams operate with a structure that allows them to focus on high-value tasks, supported by platform engineering teams that provide standardized and automated workflows and self-service AI tools.

Gartner warned that hiring and developing new talent should not be stopped despite the proliferation of micro-teams.

This is because in micro-teams, each team member must assume various roles ranging from identifying business goals to product design and AI agent management, blurring traditional role boundaries.

Analyst Camacho stated, “Reducing entry-level hiring makes it difficult to transfer technology and know-how, shrinks the internal talent pipeline, and leads to side effects such as increased reliance on senior-level hiring. "It could happen," he said.

Gartner predicted that by 2028, companies reducing entry-level positions due to AI will face gaps in their software engineering talent pipelines.