XDS Insights Report 2026

The latest edition of the XDS Insights Report is here—your essential guide to how external development is evolving into a core part of modern production pipelines.

Built on input from 250+ industry professionals, the 2026 report reveals an ecosystem moving beyond delivery risk and into a new phase defined by coordination, governance, and long-term collaboration.

Packed with industry data, expert analysis, and community perspectives, this year’s report provides the insights you need to navigate an increasingly complex development landscape.

Communication Is Now the #1 Challenge
For the first time, communication has overtaken delivery and security as the industry’s primary challenge. As teams become more distributed and multi-partner pipelines expand, coordination across workflows is emerging as the central friction point.

Historical Risks Are Declining
Several long-standing concerns are becoming less dominant. Security issues have dropped significantly, alongside delivery and quality misalignment—signaling a maturing ecosystem with stronger operational foundations.

External Development Is a Core Growth Engine
External development continues to play a central role in production strategies, with 73% of partnerships beginning through industry events like XDS. The importance of trusted networks and relationship-building remains stronger than ever.

AI Adoption Is Becoming Structured
Studios are moving away from blanket bans on AI and toward more policy-driven approaches. With less than 10% of clients currently allowing AI in contracted work, the focus is shifting to governance, disclosure, and human oversight.

Stay ahead of the curve with insights designed to help you build stronger partnerships, improve coordination, and adapt to the next phase of external development.

The research and data gathered to establish this report was collected by the organizers of the External Development Summit, with contributions from the XDS Advisory Committee.