LocalStack report: AI coding boom strains cloud development

LocalStack's 2026 State of AI in Cloud Development report finds 65% of teams generate at least twice as much code since adopting AI, with 32% reporting five times as much. 54% see more bugs in AI-generated code, and 97% report production failures that staging environments fail to catch.

• 65% of teams write at least twice as much code with AI, 32% write 5x more
• 54% encounter more bugs in AI code; nearly half find human code easier to debug
• 79% give AI agents access to cloud dev and staging environments
• 97% report production failures that staging environments cannot catch