# AI Engineering Productivity is Anything But Normal

> Source: <https://www.tomtunguz.com/ai-engineering-productivity-anything-but-normal/>
> Published: 2026-07-21 00:00:00+00:00

We are now in an era where we should expect 3x more from each other.

Over the last six months, one data point has followed another :

- NVIDIA reported a 3x increase in committed code across 30,000 developers with bug rates flat.
[1](#fn:1) - Amplitude tripled weekly production commits, with an AI agent now a top-three contributor to the codebase.
[2](#fn:2) - Anthropic measured a 2.5x increase in code written per engineer since adopting Claude Code internally, quality stable.
[3](#fn:3) - Replit doubled its team & tripled per-engineer output over the same period, with review times, reversions, & incidents all flat.
[4](#fn:4)

The chart above sorts the ecosystem into three unequal tranches, each defined by how much of the model’s power the company captures.[5](#fn:5)

The first tranche is what most companies experience today. Distribute an AI IDE, change nothing else, & the outcome is modest.

“Engineering leaders went into AI expecting 2-3x productivity gains but are landing closer to 30%.”

— Augment Code

[6]

Faros’s telemetry across 22,000 developers confirms this: engineers completed epics 66% faster, but bugs per developer increased by 54%. 7 The Google randomized controlled trial put the number at 21%, close to GitHub’s 24%.

[8](#fn:8)This is the default outcome.

[9](#fn:9)The frontier tranche follows. Companies here have built harnesses around the model, orchestrating agents sharing context across GitHub, Linear, & Slack; escalating to engineers for their judgment.

“Every employee gets a manager agent that spawns worker agents in loops. Our internal agent outperformed a seven-figure SaaS tool in security testing and incident triage at one-tenth the cost.”

— Amjad Masad, Replit, “The Self-Driving Company”

[4]

Human PR review time dropped 30%. Complex support handling time dropped 60%. Total code contribution rose 5.8x. This is where the 3x number lives.

The third tranche are the software factories, & here the name is an apt descriptor. They are AI machines that produce software mechanistically. Cognition’s Devin refactors monolithic codebases end-to-end. Factory.ai is deploying software factories at NVIDIA, Adobe, Blackstone, & EY.[10](#fn:10)

“Nubank achieved an 8x improvement in engineering efficiency & a 20x cost reduction using Devin for large-scale refactoring.”

— Contrary Research, January 2026

[11]

Goldman Sachs is piloting Devin alongside 12,000 human developers & publicly estimates agentic AI could deliver 3-4x the rate of prior tools.[12](#fn:12)

AI engineering productivity gains are here. The initial data shows what to expect: most teams should migrate from 20% productivity gains to a 3x productivity gain & they aren’t normal.

-
[Boris Cherny, head of Claude Code, on the Big Technology podcast, July 2026](https://www.bigtechnology.com/p/boris-cherny-claude-code).[↩︎](#fnref:3) -
[Amjad Masad, “The Self-Driving Company,” July 16, 2026](https://blog.replit.com/self-driving-company).[↩︎](#fnref:4)[↩︎](#fnref1:4) -
The distribution above is illustrative, not statistical. Each point is a reported multiplier from a published study, RCT, or company disclosure. It is not drawn from a sampled population, & the curve is a right-skewed log-normal fit to the pattern of reported outcomes, not to raw data. Treat it as a shape argument, not an estimator.

[↩︎](#fnref:5) -
Google internal randomized controlled trial, ~100 engineers, 2024. Referenced in DORA reports; roundup at

[Value Add VC](https://valueaddvc.com/blog/ai-coding-productivity-study-data-what-metr-mckinsey-and-github-actually-found-in-2026).[↩︎](#fnref:8) -
GitHub, Microsoft, and Accenture study with a large fintech, ~450 developers, 2024.

[↩︎](#fnref:9) -
[Factory.ai, “Factory 2.0: From coding agents to software factories”](https://factory.ai/news/software-factory).[↩︎](#fnref:10) -
[Contrary Research, “Cognition”](https://research.contrary.com/company/cognition), January 2026.[↩︎](#fnref:11) -
[CNBC, “Goldman Sachs is piloting its first autonomous coder in major AI milestone for Wall Street,” July 2025](https://www.cnbc.com/2025/07/11/goldman-sachs-autonomous-coder-pilot-marks-major-ai-milestone.html).[↩︎](#fnref:12)
