While AI-generated code, also known as vibe coding, is aiding developers in releasing software faster than ever, it seems to be simultaneously causing a greater number of production failures.

According to research carried out by New Relic, 94% of technology leaders think that AI-generated code is of higher quality when it is reviewed, but 78% say they are experiencing more incidents after deployment. Let’s explore why this is happening.

In the recent episode of the Don't Panic It's Just Data podcast, host Christina Stathopoulos, Founder of Dare to Data, was joined by Nic Benders, Chief Technology Strategist at New Relic to talk about "agent debt,” what happens when AI writes great code that breaks in production, and why SREs (Site Reliability Engineers) are left cleaning it up.

Benders states that the issue does not lie with AI itself but rather with a growing phenomenon that he refers to as "agent debt".

After gathering telemetry data, New Relic discovered that the core issues stem from Large Language Models (LLMs). These problems date back to the early days of ChatGPT, when the models were remarkably convincing at generating software code.

“The code looks really good, but it doesn't work in production. It creates incidents down the road,” he tells Stathopoulos.

This is where agent debt comes in.

• AI-generated code can increase production incidents despite passing code reviews.
• 'Agent debt' is emerging as the AI-era equivalent of technical debt.
• Observability must extend beyond applications to AI development workflows.
• Engineering teams should measure AI value—not just token consumption.
• AI may deliver greater value reviewing code than writing it.
• SRE agents will compete on data quality, not model intelligence.
• Human judgement remains essential for high-risk engineering decisions.

• 00:00 Introduction to the episode and guest
• 00:30 Overview of Nick Benders and New Relic's mission
• 01:14 Impact of AI on software development speed and review process
• 02:55 Shift from coding to downstream operations and role changes
• 06:31 Discrepancy between AI-rated quality and incident reports
• 08:08 Understanding agent debt and its signs
• 09:35 The role of observability in AI-generated code in production
• 12:22 Measuring and understanding agent debt through observability
• 14:10 Rethinking the AI software development lifecycle
• 17:30 Automating code review and process checks with AI
• 20:18 Production debugging and the role of AI in incident management
• 21:09 Use case of SRE agents in production environments
• 24:00 Future trends in SRE agents and data focus
• 25:27 Key advice for using AI tools effectively in software and operations

For more information on SRE and agent debt, visit newrelic.com and em360tech.com.

#AgentDebt #AICodingAgents #AIGeneratedCode #AIObservability #SREAgents

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