New Product Addresses the AI Development Challenge Stalling AI Adoption: Why 95% of Enterprise AI Projects Are Failing at the Backend
WOODLAND HILLS, Calif., Oct. 22, 2025 /PRNewswire-PRWeb/ -- Xano, a leading provider of a low-code backend for building and running production-grade applications and AI agents, today announced the launch of Xano 2.0. This major release fixes a key challenge in the software development industry known as "the vibe coding trap," where AI coding tools deliver quick demos but fall short in real enterprise production.
As enterprise AI spending surges from $600 million to $4.6 billion, research reveals a troubling pattern: 95% of AI pilots fail to deliver measurable business impact, nearly half of AI-generated code fails basic security checks, and abandoned AI projects have nearly tripled year over year.
Xano 2.0 is the first backend platform to offer the speed of AI-generated code, with a visual validation layer that makes application logic fully transparent, all in a single production-grade environment — eliminating the black-box risks, technical debt, and governance gaps common in AI code generators. Companies using Xano report up to 80% lower development costs versus traditional development and 10× faster project delivery.
"The AI coding trend has created a 'vibe coding' trap where the illusion of speed leads to massive amounts of security risk and technical debt," said Prakash Chandran, Co-founder and CEO of Xano. "With Xano 2.0, we've solved that problem by combining the speed of AI with visual validation and a code-first experience. The result is logic that's transparent, editable, and governed for enterprise-ready reliability, without sacrificing the developer experience."
Xano 2.0: Three Ways to Build, One Production-Grade Foundation
While popular AI coding tools have captured attention for enabling fast frontend demos, they lack the security, scalability, and governance needed for production deployment. Xano 2.0 provides the backend infrastructure to power those experiences at enterprise scale, without forcing teams to choose between speed and reliability.
The platform unifies three critical development approaches:
1. Build with AI: Generate at AI speed, without losing control
- From Prompt to Working Software: Instantly generate backend functions from natural language using Xano's suite of AI Assistants, including the new Logic Assistant.
- Transparency, Not Black Boxes: Every AI-generated function is visualized in Canvas View or the Function Stack for validation and editing.
- Enterprise-Ready AI: Outputs are production-grade from day one, with built-in scaling, compliance, and monitoring.
2. Build with Code: Full code editing support and a first-class developer experience
- Backend infrastructure & logic as code: A new scripting language, XanoScript (XS), keeps backend code and visual logic perfectly synchronized.
- Stay within preferred developer tools: A new IDE Extension makes it easy for pro developers to build inside their preferred IDEs like VS Code, Cursor, or Claude Code with AI assistant support.
- Git Sync & Version Diff: Integrations with GitHub and GitLab for version control and auditability, with AI-enhanced diffs for total clarity before deployment.
3. Collaborate Visually: Clarity for Hybrid Teams
- Canvas View: A node-based workflow builder that makes backend logic easy to design, share, and validate.
- Seamless Sync: Developers, business leaders, and non-coders all work from the same source of truth, reducing misalignment and mistakes while improving collaboration.
"With Xano, we rebuilt in six months what took two years in traditional code. But we didn't just choose Xano because it helped us go fast — we chose it to move fast while meeting strict requirements for stability, scale, and security", said Aleksander Hakestad, CTO & Co-founder, Apart Tech. "Xano 2.0 will help us accelerate even further and improve collaboration across our pro developers and business stakeholders; for us, it's a way to innovate faster without compromising on trust."
The Backend Imperative
Xano 2.0 arrives as the software development landscape undergoes a fundamental transition. "As consumer interfaces shift from static applications to generative UI and chat-native experiences are powered by AI agents, the backend has become the critical foundation that most companies aren't prepared to build. Therefore, traditional user interfaces are dying," added Chandran. "The future is agentic software where backends must orchestrate multiple AI agents working together. Most companies are focused on the shiny frontend demos while ignoring the backend infrastructure crisis that will determine who survives this transition."
Availability
Xano 2.0 is available immediately. To learn more visit www.xano.com.
About Xano
Xano's mission is to be the most trusted low-code backend for building and running production-grade applications and AI agents—fast, secure, and enterprise-ready. Today, the company handles millions of API requests for over 100K creators and processes millions of transactions in over 84 countries daily. Built for startups racing to market and enterprises demanding scale and compliance, Xano replaces the patchwork of backend tools with a single platform designed for speed, security, and transparency. For more information visit www.xano.com.
Media Contact
Andrew Haire, Xano, 1 970-227-1185, [email protected], xano.com
SOURCE Xano
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