Skip to content

Larridin Data / Q3 2026

AI Impact in
Engineering
Report.

More AI. More output. A different kind of team.
What changed in engineering—and what leaders are changing next.

Q2–Q3 2026 · Production telemetry + engineering leader survey

62%

of merged pull requests were
AI-assisted in September

11%

monthly AI coding-spend growth in September
down from 65% in July

40.8%

of surveyed leaders reorganized
around products or outcomes

How AI is changing engineering.

Selected findings · Open to everyone

AI-assisted work
is now the majority.

The share of merged pull requests with AI involvement rose from 35% in April to 62% in September. The shift is visible in shipped work.

AI-assisted share of merged pull requests
April35%
September62%

Average across measured companies · April–September 2026

AI coding costs are rising.
The pace is slowing.

Monthly growth in billed AI coding spend slowed from 65% in July to 13% in August and 11% in September, averaged across companies. Spend is still increasing, but far more slowly.

Output per engineer rose 33% from Q2 to Q3. Separately, AI spend per unit of output was 89% above May by September, with most of that increase occurring by July.

Growth in billed AI coding spend vs. previous month
June68%
July65%
August13%
September11%

Average growth across companies with billed spend in every month from May to September 2026. Includes Claude Code, Cursor, OpenAI Codex and GitHub Copilot.

The separate spend-per-output index uses one scoring version: May = 100, September = 189. One later adopter raises that average; some companies were below their May level by September.

The org chart
is changing, too.

40.8%

of surveyed engineering leaders reorganized around products or outcomes in the past year.

Others changed manager spans, seniority and role mix, or created new roles in verification, agent platforms and AI enablement.

What leaders changed in the past 12 months
Product / outcome teams40.8%
Wider manager spans23.5%
Narrower manager spans23.5%
Different seniority / role mix19.4%
New roles15.3%
No changes yet29.6%

LDX3 New York · September 2026 · Approximately 98 respondents. Multiple selections allowed; percentages do not sum to 100%.

The complete picture

Ground your 2027 plan in evidence.

Get the analysis and metrics to guide decisions about AI investment, engineering performance and team structure.

  • AI adoption, output and cost
  • Review, quality and coding-agent sessions
  • Coding tools and team organization
  • Methods, definitions and planning metrics

PDF · 21 pages · Available immediately

We’ll use your email to record your report request. Privacy policy

About the research

Pull-request trends cover April–September 2026 at companies using Larridin Engineering Intelligence. Company averages give each company equal weight. Team changes come from a separate live, multi-select poll at LDX3 New York. Findings are descriptive and do not establish causation.

How to read these findings

AI-assisted means a merged pull request carries any AI attribution, from direct or inferred evidence. Output measures shipped engineering work, not business value; it weights complexity and size and discounts missing tests and AI slop. Read the measurement methodology.

Output compares Q2 with Q3 on one scoring version, adjusted for the July 30 model change. Billed AI spend per output unit uses a fixed set of companies with billed spend in every month from May to September, indexed to May = 100. Coding-tool spend excludes ChatGPT and API spend; the week of September 28 is excluded because billing may be incomplete.

Company-based figures cover at least five companies and at least 25 engineers or users per company. Output per engineer includes engineers with at least 10 merged pull requests in the quarter. Larridin’s own engineering team is excluded. The poll had approximately 98 respondents, allowed multiple answers, and describes the leaders in that room—not all engineering teams.