New Relic Launches Open-Source AI Coding Observability Tool to Bring Visibility to AI-Assisted Development

New Relic has announced the development of a new open-source capability called New Relic AI Coding Observability, designed to help engineering teams monitor, govern and optimise AI-assisted software development.

As organisations rapidly adopt AI coding assistants, many of these tools currently operate outside traditional observability frameworks, creating gaps in visibility, security and cost management.

New Relic’s new solution extends production-grade monitoring into the coding phase itself, turning previously untracked AI usage into a measurable and controlled enterprise workflow.

“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, organisations are scaling risk as fast as they’re scaling output. New Relic AI Coding Observability will close this gap, removing barriers to quality innovation that succeeds in production,” said Brian Emerson, New Relic Chief Product Officer.

The company said AI coding tools are becoming a major part of modern software development, with Gartner predicting that 90% of enterprise software engineers will use AI code assistants by 2028. However, organisations often rely on multiple AI coding platforms rather than a single provider, leading to fragmented workflows.

New Relic AI Coding Observability is being designed as a vendor-neutral platform that collects telemetry from major AI coding assistants and connects it with existing production infrastructure.

The feature will allow teams to understand AI-generated code activity, track spending, measure productivity improvements and identify inefficiencies.

The solution will also focus on security and compliance through a local-only mode that keeps data within private networks. New Relic said the open-source approach will provide transparency by allowing engineering and security teams to review the code and verify privacy practices.

Built on OpenTelemetry and Model Context Protocol (MCP), the platform aims to prevent vendor lock-in and support multiple AI coding tools, including Claude Code, Cursor, GitHub Copilot, Windsurf and Amazon Q.

New Relic AI Coding Observability will be available as an open-source feature from June 23 at no additional cost, with standard New Relic data ingest rates applying.

Earlier this year, the observability company announced a broad set of platform innovations to connect application performance directly to customer experience and business outcomes, at a time, when enterprises grapple with increasingly complex AI-powered systems.