AI Tools Cut Legacy Refactoring 74% While Quietly Creating New Tech Debt

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AI coding tools are reshaping how the software industry deals with legacy code, but the outcome is more complex than simple improvement. Research by GitClear found that developer refactoring of code older than 12 months has dropped 74% since 2023, as AI tools encourage building new features rather than cleaning up existing ones. Google's DORA report further found that every 25% increase in AI usage correlates with roughly 7.2% greater system instability. On the enterprise side, companies like ARCAD and Fresche are building businesses around AI-assisted modernization of decades-old systems such as COBOL and RPG, a market that Anthropic also targeted with its $100M Claude Partner Network launch in March 2026. Experts warn that AI-generated code often passes tests and satisfies prompts in the short term, but can embed hidden errors and unclear logic that become costly technical debt down the line.

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