Yes this is honestly the silliest part of the whole conversation.
I am currently employing 6 software engineers in my company. If from tomorrow they were 10x more productive then I would employ 6 software engineers because that is the budget I have.
Their increased productivity would lead to a faster growth and I would then have budget for more.
If you increase the productivity of software engineers then people will hire more software engineers not fewer.
I think there are types of problems that AI will be great at solving. If you can pass in a whole codebase then we might have LLMs that can suggest refactoring etc to improve code quality.
Code mods like upgrading from python 2 -> 3 could also become possible.
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