AI Productivity Is Up. Are Your Metrics Keeping Up?

A study titled "State of Engineering Excellence 2026" explores the complex impact of AI tools on engineering productivity, revealing both increased output and significant challenges. While 89% of engineering leaders report enhanced productivity from AI, 81% also note a rise in code review time, with developers spending about a third of their day on AI-related tasks not captured by traditional metrics. This suggests that while AI boosts productivity, it also shifts focus to unmeasured areas, creating a gap between code generation and actual value delivery. The report highlights a disconnect between leadership's confidence in current metrics and the reality faced by developers, who often fear performance evaluations based on incomplete data. Organizations like Harness are addressing these issues by developing new capabilities to provide a more comprehensive view of AI's impact, emphasizing the need for AI-native measurement systems to sustain productivity gains.