India, June 12 -- AI-generated code is moving quickly from experiments to everyday software development, but the latest New Relic State of AI Coding report 2026 shows a growing gap between confidence and reality. While technology leaders believe AI-generated code delivers strong quality during reviews, many organisations are facing challenges once that code reaches production.

The report highlights a new concern for engineering teams - balancing faster development with operational stability. As AI tools become a larger part of software creation, organisations are now dealing with issues around reliability, verification and long-term maintenance.

According to the report, 94% of leaders believe AI-generated code is higher quality than hum...