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Knowledge at Wharton · September 9, 2026

AI Is Producing More Software. Why Isn’t It Being Used?

OperationsManagementBusiness Analytics
THE AI ANGLE
Accelerating code generation while shifting operational bottlenecks downstream to human review and distribution

A study of over 100,000 developers found that while generative AI tools boosted coding activity by up to 180%, finished software releases grew by only 30% due to persistent human bottlenecks in code review, integration, and distribution. Moreover, while new app releases surged dramatically across major marketplaces, total user adoption remained flat or declined. For faculty in operations and management, this highlights how upstream automation fails to translate into proportional organizational throughput without addressing downstream process constraints.

THE TEACHING ANGLE
Students can analyze the theory of constraints by evaluating why accelerating code production merely shifts the operational bottleneck to human review, system integration, and user adoption.

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