AI code generation is a transformative technology that enhances software development by enabling faster prototyping, supporting learning, and encouraging collaboration while maintaining human oversight. It allows developers to generate code from natural language prompts and is especially beneficial in industries like manufacturing, energy, government services, finance, and biotechnology. Despite its advantages, AI-generated code often requires thorough review by experienced programmers to ensure accuracy and contextual relevance, as it may contain bugs or lack alignment with specific project requirements. The use of AI in coding also poses challenges such as potential over-reliance leading to skill atrophy among developers and issues with contextual understanding. Best practices suggest using AI strategically, providing detailed prompts, and integrating manual code review processes to maximize its benefits while mitigating risks.