In the rapidly evolving landscape of software development, Artificial Intelligence (AI) emerges as a pivotal force, reshaping traditional methodologies and introducing groundbreaking efficiencies. This research delves into the integration of AI in software development, aiming to elucidate its transformative impact on coding practices, project management, and quality assurance. We commence with a comprehensive literature review, highlighting the historical progression and current state of AI applications in software development. Our methodology encompasses a blend of qualitative and quantitative analyses, including case studies of AI-driven projects and comparative evaluations of AI tools in real-world scenarios. The core of our research focuses on key AI technologies such as machine learning algorithms and natural language processing, examining their roles in automated code generation, testing, and debugging. The results reveal significant enhancements in efficiency, accuracy, and complexity management, attributable to AI integration. However, our discussion also addresses the challenges and ethical considerations that accompany AI adoption, emphasizing the need for balanced and responsible approaches. Looking forward, we explore emerging trends and potential future advancements in AI, proposing avenues for further research. This study not only underscores the transformative potential of AI in software development but also serves as a guiding framework for practitioners and researchers in navigating this dynamic field. Â