It's just one more step in the multi-generational trend of eliminating/outsourcing lower skilled jobs and increasing the barriers to entry for the remaining jobs. I'm not optimistic.
Outsourcing isn't just grunt work. It's almost all work, but cheaper and with less control over the outcome. There will be no "guiding people/LLMs".
You have talented people all over the globe and to date what the best of the best were doing is move to the US. Those were the people guiding/managing outsourced teams, not Americans. You see this now with the "Indians hiring Indians" phenomenon.
Trump put the brakes on that, so currently the only thing that's certain is uncertainty.
My take is that there will be an attempt to replace at least the bottom end of outsourcing with LLMs, so more pressure on offshore labour to perform and, over time, fewer positions overall, as junior roles have already evaporated around here and eventually that will translate to fewer seniors.
It might not be only grunt work, but it is mostly grunt work. That lack of control has led to our org only outsourcing grunt work and low risk projects because of the higher failure rates we've seen. We are starting to use on-shore senior+ and TLs to oversee the work the off-shore resources are doing to help control the outcomes more.
Also FAANG and the like perhaps didn't outsource, but definitely offshored much of their operations.