AI coding assistants are rapidly transforming software development, but are known to produce insecure code. Prior work has measured whether AI-assisted developers produce secure code, but less is known about how they evaluate AI-generated code: whether they can identify vulnerabilities, what cues they use, and how trust shapes their decisions. This evaluation step is foundational to secure development with AI, whether using auto-complete, chat tools, or AI agents. As a first step, we conducted a remote observational study with 100 participants isolating this evaluation stage. Participants were tasked with producing secure and functional code for four C linked-list tasks. For each, participants were able to cycle through five AI-generated suggestions varying in security and functionality, select one, and edit their choice into a final submission. Participants also completed a post-study survey about their decision-making and perception of AI-generated code's security and 23 completed a more in-depth interview.

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