The reality is AI will change how software is built, but it's still just a tool that requires the same type of precise thinking that software developers do. You can remove all need to understand syntax, but the need for translating vague desires from laypeople into a precise specification will remain—there's nothing on the AI horizon that will solve for this, and savvy tech leaders know this. So why are we hearing this narrative from tech leaders who should know better? Two reasons:
First is that the majority of investor gains in the US stock market have been fueled heavily by AI hype. Every public tech CEO is getting questions from analysts about what their AI strategy, and they have to tell a compelling story. There's very little space or patience for nuance here because no one really knows how it will play out, but in the meantime investors are making decisions based on what is said. It's no surprise that the majority of execs are just jumping on the bandwagon so they have a story to keep their stock price propped up.
Second, and perhaps more importantly, regardless of AI, software teams across the industry are just too big. Headcount for tech companies has ballooned over the last couple decades due to the web, smart phone revolution and ZIRP. With this type of environment the FAANGs of the world were hoarding talent just to be ready to capitalize on whatever is next. But the ugly truth is that a lot of the juice has already been squeezed, and the actual business needs don't justify that headcount over the long-term. AI is convenient cover story for RIFs that they would have done anyway, this just ties it with a nice bow for investors.