New Relic extends observability to AI-assisted development

▼ Summary
– New Relic announced AI Coding Observability, an open-source tool to monitor AI-assisted software development workflows and close visibility gaps.
– The tool provides a unified, vendor-neutral view across multiple AI coding assistants, normalizing telemetry and correlating it with production infrastructure.
– Features include tracking AI coding assistant spend, forecasting budgets, and alerting before cost thresholds are hit.
– It offers local-only/zero-outbound mode for data sovereignty and fully readable open-source code for independent verification.
– AI Coding Observability will be available on June 23 at no additional cost, supporting tools like Claude Code, Cursor, and GitHub Copilot.
New Relic has unveiled AI Coding Observability, an open-source solution designed to bring the same level of monitoring rigor to AI-assisted software development that enterprises already apply to their production environments. As organizations increasingly rely on AI coding assistants, these tools have largely remained a blind spot, operating outside traditional observability frameworks. This new offering aims to close that gap by providing real-time visibility into how AI tools are used during the development lifecycle, allowing teams to track, audit, and analyze these activities.
“You can’t manage what you can’t see. AI coding assistants are having a measurable impact on businesses, but without real-time oversight into how they’re behaving, organizations are scaling risk as fast as they’re scaling output,” said Brian Emerson, Chief Product Officer at New Relic. “New Relic AI Coding Observability will close this gap, removing barriers to quality innovation that succeeds in production.”
The move is a response to the rapid proliferation of AI coding tools. Gartner predicts that by 2028, 90% of enterprise software engineers will use AI code assistants. However, most engineering teams do not standardize on a single tool. Instead, they rely on a fragmented mix of assistants, each suited to different tasks. New Relic’s solution is designed to future-proof these workflows by offering a unified, vendor-neutral dashboard that normalizes telemetry across major AI coding assistants and correlates it with existing production infrastructure.
Key capabilities of the new tool include:
- Code development insights – Move beyond blind trust in AI tools by gaining a comprehensive view of how they actually behave during application and service development.New Relic AI Coding Observability will be available as an open-source feature starting June 23 at no additional cost.





