AI-Assisted Development Costs Enterprises 13,900+ Engineering Hours Annually

• •AI-assisted development consumes over 13,900 engineering hours annually for organizations with 100 engineers.
• •93% of surveyed leaders report increased productivity from AI, but governance struggles to keep pace.
• •Only 31% of organizations have quantified the total cost of unmanaged open source risk.

A study by ActiveState reveals that AI-assisted development leads to significant hidden costs for enterprises, consuming over 13,900 engineering hours annually per organization with 100 engineers. Each engineer reportedly spends at least 139 hours a year addressing issues related to AI-assisted work. The costs associated with release delays, compliance findings, and security incidents are absorbed by different budgets, making it difficult for organizations to quantify the total expense. The survey included 307 leaders from engineering, security, and compliance sectors across North America and Western Europe. While 93% of respondents noted increased productivity due to AI, 83% acknowledged that developer productivity is outpacing governance capabilities. Only 31% of organizations have quantified the total cost of unmanaged open source risk, indicating a lack of visibility into the overall financial impact of these challenges.