Artificial Intelligence has demonstrated its significance in software engineering through notable improvements in productivity, accuracy, collaboration, and learning outcomes. This study examines the impact of generative AI tools, specifically ChatGPT, on the software development experiences of undergraduate students. Over a three-month project with seven students, ChatGPT was used as a support tool. The research focused on assessing ChatGPT’s effectiveness, benefits, limitations, and its influence on learning. Results showed that ChatGPT significantly addresses skill gaps in software development education, enhancing efficiency, accuracy, and collaboration. It also improved participants’ fundamental understanding and soft skills. The study highlights the importance of incorporating AI tools like ChatGPT in education to bridge skill gaps and increase productivity, but stresses the need for a balanced approach to technology use. Future research should focus on optimizing ChatGPT’s application in various development contexts to maximize learning and address specific challenges.