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September 2025

How tech companies measure the impact of AI on software development

How do GitHub, Google, Dropbox, Monzo, Atlassian, and 13 other companies know how well AI tools work for devs? A deepdive sharing exclusive details, with CTO Laura Tacho Open up…

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How tech companies measure the impact of AI on software development

How do GitHub, Google, Dropbox, Monzo, Atlassian, and 13 other companies know how well AI tools work for devs? A deepdive sharing exclusive details, with CTO Laura Tacho

Open up LinkedIn, and it only takes about 30 seconds to stumble across a post about AI changing how companies develop software. There are headlines about companies, mostly US-based Big Tech, supposedly shipping huge amounts of AI-generated code – Google with 25%Microsoft with 30% – with reports implying all this code lands in production, and some founders say AI can replace junior engineers. On the other hand, studies like the recent METR study about AI’s impact on open source software tasks, find that AI can mess with our time perception and actually slow us down, even when we think we’re moving faster.

When it comes to showing AI impact, the headlines are pretty one-dimensional. AI can write a lot of code which saves time – or does not. Meanwhile, we’re careening toward the biggest pile of tech debt the world has ever seen.

I’m often left wondering why our industry has become fixated on lines of code (LOC) again; why is this the metric in the headlines? What about quality, innovation, time-to-market, and reliability? We agreed a long time ago that LOC is a bad measure of developer productivity, but it’s easy to measure LOC, and in the absence of a clear alternative, easy to latch on to. It also makes for good headlines.

Right now, many engineering leaders are making big decisions about AI tools without really knowing what works and what doesn’t. According to research in LeadDev’s 2025 AI Impact Report from 880 engineering leaders, 60% of leaders cited a lack of clear metrics as their biggest AI challenge. My own experience aligns with this. I have numerous conversations each week with leaders who are feeling pressure to deliver results like in the headlines, and are at the same time frustrated by boards or exec teams fixated on measuring LOC. There’s a gap between what leaders need to know and what’s being measured and talked about, and this measurement gap only widens as new tools and capabilities hit the market.

Closing this measurement gap is my job. I’ve worked on dev tools for over a decade, and since 2021, I’ve been researching and advising companies on improving developer productivity. Since joining DX as CTO two years ago, I now do this on an even larger scale, working closely with hundreds of amazing companies in the complex and important space of developer experience, engineering efficiency, and AI impact.

Earlier this year, I co-authored the AI Measurement Framework, which is a recommended set of metrics to track AI adoption and impact across engineering teams. This framework is built upon rigorous field research, as well as data analysis from 400+ companies, and how they’re actually rolling out and measuring AI tools.

Today, we’ll look into how 18 tech companies measure AI impact in the real world, giving you a peek into the research that goes into something like the AI Measurement Framework. I’ll share:

  • The real metrics companies like Google, GitHub, and Microsoft use to measure AI impact
  • How they use the metrics to figure out what’s working and what’s not
  • How you can measure AI impact
  • AI-impact metrics definitions and measurement guide Read here the whole article 

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