Speed at the Cost of Quality: How Cursor AI Increases Short-Term Velocity and Long-Term Complexity in Open-Source Projects

Large language models (LLMs) have demonstrated the promise to revolutionize the field of software engineering. Among other things, LLM agents are rapidly gaining momentum in software development, with practitioners reporting a multifold increase in productivity after adoption. Yet, empirical evidence is lacking around these claims. In this paper, we estimate the causal effect of adopting a widely popular LLM agent assistant, namely Cursor, on development velocity and software quality. The estimation is enabled by a state-of-the-art difference-in-differences design comparing Cursor-adopting GitHub projects with a matched control group of similar GitHub projects that do not use Cursor. We find that the adoption of Cursor leads to a statistically significant, large, but transient increase in project-level development velocity, along with a substantial and persistent increase in static analysis warnings and code complexity. Further panel generalized-method-of-moments estimation reveals that increases in static analysis warnings and code complexity are major factors driving long-term velocity slowdown. Our study identifies quality assurance as a major bottleneck for early Cursor adopters and calls for it to be a first-class citizen in the design of agentic AI coding tools and AI-driven workflows.