The term "agile development" refers to a methodology in software projects that emphasizes flexibility, collaboration, and customer feedback. Agile allows teams to work in iterative cycles, known as sprints, enabling rapid updates and adjustments based on user needs and changing requirements. This approach fosters a continuous improvement mindset, encouraging regular communication among team members and stakeholders. By prioritizing the delivery of small, functional increments of software, agile development enhances responsiveness to market demands and increases the likelihood of creating software that meets user expectations effectively.