MAHMUDUL HASAN

Just a year ago, the growing adoption of artificial intelligence (AI) raised concerns across Bangladesh’s software industry. The biggest fear was simple: AI would replace jobs. Today, that fear has not disappeared entirely, but the conversation has clearly shifted.For many of Bangladesh’s leading software companies, AI is now seen less as a threat and more as a driver of growth in an industry that had been struggling to expand.

Industry leaders say AI is supporting growth in two main ways. First, companies are using AI internally to speed up software development, testing and deployment, while also reducing costs and improving quality.Second, the global AI boom is opening new business opportunities, as international clients increasingly demand AI-powered automation and upgrades to existing systems.

“The fear of AI has largely faded, at least for now,” said M Manjur Mahmud, president of DataSoft Systems Bangladesh Ltd.

“Companies are now focused on understanding how AI can reshape business models and create new opportunities. Global clients increasingly want to upgrade their existing software with AI, agent-based AI and machine learning capabilities,” he added.

However, he noted that demand for traditional software development is declining.

“Companies that relied on low-value services, such as basic website development and routine software work, are already losing business,” he said.

NEW TYPES OF WORK AND RISING PRODUCTIVITY

For Brain Station 23, one of Bangladesh’s largest software firms with nearly 1,000 employees, AI is driving growth rather than slowing it.

“Because of AI, we are seeing about a 25 percent to 30 percent increase in entirely new types of work,” said Raisul Kabir.

“At the same time, traditional workloads have fallen by around 10 percent to 15 percent. Overall growth is about 15 percent to 20 percent, which is reflected in our revenue,” he said.

Kabir acknowledged that AI is reducing traditional software work.

“There is no doubt that AI has reduced a lot of our traditional workload. The work is shrinking,” he said.

However, he added that AI has also greatly improved productivity.

“A task or piece of code that used to take 10 days can now be completed in one or two days with AI.”

This efficiency is also helping firms take on more advanced global projects.

“We can now take on projects that we could not handle before. For example, we could not work with Magento (an open-source e-commerce platform) earlier, but now we can manage Magento projects easily thanks to AI,” Kabir added.

The industry’s AI-driven expansion is also visible in export data. According to the Export Promotion Bureau (EPB), software exports rose 54 percent year-on-year to $21.39 million between July and November last year, driven by rising global demand for automation tools, AI-integrated applications and custom software solutions.

Industry leaders say the actual size of Bangladesh’s software exports is significantly higher than official figures suggest. They argue that many companies’ earnings are not fully captured in official data, and a large share of income from freelancers and independent tech professionals is also missing from reporting.

FREELANCERS, JUNIOR DEVELOPERS UNDER PRESSURE

However, while established software firms are benefiting, the outlook is more uncertain for freelancers, small firms and entry-level developers.