Google has released Android Studio Panda 2, featuring an AI agent that generates applications and an AI-enhanced version upgrade assistant. This version is based on JetBrains IntelliJ IDEA's community edition. The AI capabilities are powered by Gemini, Google's large language models, with a free tier offering a lightweight version of Gemini 2.5 Pro. Developers can create prototypes with a single prompt, and the AI agent automates project planning, code generation, error analysis, and self-correction. Users must sign into Gemini and enable AI integration, with data collection practices in place. A demonstration showed the AI generating a bridge deal analyzer, which functioned but had inaccuracies in the generated code. Android Studio also experienced performance issues and deprecated certain features, including the Custom View preview and 3D mode in the layout inspector.