AI Coding Assistants Are Changing Software Projects: An Honest Look at Cost and Quality

If you have asked for a software quote lately, someone may have told you that AI makes everything faster and so cheaper. There is some truth in it and a good deal of exaggeration. This post sets out what the better evidence says, which parts of a project AI does not touch, and how to read a low quote.

What AI coding tools do well

AI assistants suggest code as a developer types, draft routine screens, write first versions of tests, explain unfamiliar code and convert one format to another. On well-understood, repetitive work, such as a standard form or a simple report, they can save real time. Developers use them widely: Google's 2025 DORA research, based on nearly 5,000 technology professionals, found 90% of respondents using AI at work and more than 80% believing it had raised their productivity.

What the evidence says, including the awkward parts

The picture is not a simple speed-up. In a randomised trial published by the research group METR in July 2025, 16 experienced open-source developers completed 246 real tasks in large codebases they knew well. They expected AI to make them 24% faster. Tasks where AI was allowed actually took 19% longer. The authors cautioned that the group was small, the codebases large and complex, and that tools were improving quickly, so they did not expect the same result a few months later. Treat it as a warning against assuming a free speed-up, not as proof that AI is slow.

The DORA report found a pattern that matters more to a buyer. AI adoption is now linked with higher delivery throughput, but still with lower delivery stability. In plain words, teams ship faster and break more, unless they have strong automated testing and quick feedback. The report's summary is that AI amplifies what a team already is: good practice gets faster, weak practice gets worse. It also found about 30% of respondents had little or no trust in AI-generated code.

What AI does not shorten

• Working out what you need. Most project delays come from unclear requirements and late changes, not typing speed. See why most ERP projects fail.
• Design decisions. Who can see which data, how invoices round off, what happens when a payment fails: someone must decide these.
• Testing. Generated code can look correct and still fail on an odd case. QA testing and your own acceptance check cannot be skipped.
• Security review. A model may produce code that works but leaves a door open, such as a missing permission check.
• Accountability. If a bug loses an order, the tool will not answer your call. The studio must.

Code that nobody properly understands also becomes technical debt: cheap today, expensive when you need a change in a year.

Why a very cheap quote "because of AI" is a warning sign

A fair claim would be: "AI saves us a little time on routine parts, so we can hold the price." An unfair one is: "AI builds it in days, so the price is a third." Be careful when you see these:

• A price far below every other quote, with no clear explanation of what is left out.
• No written scope, no milestones and no testing phase.
• No transfer of source code and accounts at the end.
• Nobody can explain how a feature works, only that "the AI made it".
• A demo that looks polished but cannot handle a second user, a refund or a power cut.

Our guide to custom software costs in India gives realistic ranges to compare against. Real systems with logins, payments and an admin panel take weeks to build and test, whatever tools are used.

Questions to put to any studio

1. Do you use AI coding tools, and who reviews and takes responsibility for the code they produce?
2. How is the work tested before I see it, and what do you test by hand?
3. Will I receive the full source code, design files and accounts at the end?
4. What happens if I find a fault after launch?
5. Can I see working software every week, not only at the end?

How a careful studio uses AI

The sound approach is simple: let AI draft, let a developer read and own every line, and keep the testing and review steps as strong as before. At VS Tech Builders the terms that protect you do not depend on any tool: fixed scope with milestone payments, weekly demos in the Develop stage, a Test stage before Deploy, a 14-day post-launch correction window, and transfer of full source code on final payment. You can see the stages on our process page, and our guide to choosing a software company lists more checks. To compare a quote you have received, contact us.

Sources

Checked on 3 November 2026. Technology changes quickly; always confirm details with the official source before you act on them.

• AI coding tools may not speed up every developer, study shows — TechCrunch
• Announcing the 2025 DORA Report: State of AI-assisted Software Development — Google Cloud Blog

Frequently asked questions

Do AI coding assistants make software development cheaper?

They can save time on routine code, but the evidence is mixed. A 2025 METR trial found experienced developers took 19% longer with AI on complex tasks, while Google's DORA research links AI with faster delivery but lower stability. Requirements, testing and security review still take time, so large price cuts are unlikely.

Is AI-generated code safe to use in a business application?

It can be, if a developer reads it, tests it and reviews its security before it ships. Unreviewed code may work in a demo yet miss permission checks or fail on unusual cases. Ask your studio who is responsible for AI-written code and what testing happens before delivery.

Why is one software quote much cheaper than the others?

Check what is missing before celebrating. Low quotes often leave out testing, security, documentation, source code handover or support. Ask for a written scope, milestones and what happens after launch. If the only explanation is that AI does the work, treat that as a reason to ask more questions.

Should I ask my software company whether it uses AI tools?

Yes, and ask how it keeps quality. A good answer names who reviews the code, how it is tested, and how you will see progress each week. Using AI tools is normal. Hiding it, or using it as the only reason for a low price, is the concern.