The SPACE of AI: Real-World Lessons on AI's Impact on Developers

As artificial intelligence (AI) tools become increasingly embedded in software development workflows, questions persist about their true impact on developer productivity and experience. This paper presents findings from a mixed-methods study examining how developers perceive AI's influence across the dimensions of the SPACE framework: Satisfaction, Performance, Activity, Collaboration and Efficiency. Drawing on survey responses from over 500 developers and qualitative insights from interviews and observational studies, we find that AI is broadly adopted and widely seen as enhancing productivity, particularly for routine tasks. However, the benefits vary, depending on task complexity, individual usage patterns, and team-level adoption. Developers report increased efficiency and satisfaction, with less evidence of impact on collaboration. Organizational support and peer learning play key roles in maximizing AI's value. These findings suggest that AI is augmenting developers rather than replacing them, and that effective integration depends as much on team culture and support structures as on the tools themselves. We conclude with practical recommendations for teams, organizations and researchers seeking to harness AI's potential in software engineering.