Agile development is relevant in tech as it promotes an iterative and collaborative approach to software development. By breaking projects into smaller increments, teams can quickly adapt to changing requirements and deliver functional software in shorter cycles. Agile methodologies emphasize direct communication, continuous feedback, and flexibility, allowing for rapid adjustments based on user input. This approach improves responsiveness to market needs and fosters innovation, making it suitable for dynamic environments where user demands and technological advances are constantly evolving.