Continuous integration (CI) plays a crucial role in software development by automating code integration from multiple developers into a shared repository. Developers frequently merge their changes, which allows for immediate feedback on code quality and compatibility through automated builds and tests. This practice helps identify bugs early, reduces integration problems, and promotes a stable codebase. Additionally, CI supports a faster release cycle, enabling teams to respond swiftly to customer feedback and market changes, thus enhancing overall productivity and collaboration.