diff --git a/docs/cli/test.md b/docs/cli/test.md
index c1e5a52c1a..6eda8797d4 100644
--- a/docs/cli/test.md
+++ b/docs/cli/test.md
@@ -258,7 +258,7 @@ Set any of the following environment variables to enable AI-friendly output:
 
 - `CLAUDECODE=1` - For Claude Code
 - `REPL_ID=1` - For Replit
-- `IS_CODE_AGENT=1` - Generic AI agent flag
+- `AGENT=1` - Generic AI agent flag
 
 ### Behavior
 
@@ -267,7 +267,6 @@ When an AI agent environment is detected:
 - Only test failures are displayed in detail
 - Passing, skipped, and todo test indicators are hidden
 - Summary statistics remain intact
-- JUnit XML reporting is preserved
 
 ```bash
 # Example: Enable quiet output for Claude Code
diff --git a/src/output.zig b/src/output.zig
index 6504c188db..0a29d01c78 100644
--- a/src/output.zig
+++ b/src/output.zig
@@ -468,7 +468,7 @@ pub fn isAIAgent() bool {
     const get_is_agent = struct {
         var value = false;
         fn evaluate() bool {
-            if (bun.getenvZ("IS_CODE_AGENT")) |env| {
+            if (bun.getenvZ("AGENT")) |env| {
                 return strings.eqlComptime(env, "1");
             }