Making the widget cheaper doesn't necessarily create demand either. I will not buy 10 times more toothbrushes or writing pens if their prices suddenly decreased to 1 cent.
The demand for software or features will not increase at the speed of our ability to produce them.
Why do you think 100% of all companies will choose the first? Obviously some will choose the latter, hence it sounds like layoffs.
Talking point: I think it is communication, and AI (notably information exchange in “Claudish”) is not as effective there.
There is no MBA like magical growth, the amount of customers is a physical limitation of inhabitants on planet Earth that are willing to actually use a specific piece of software, regardless of how productive it was made in first place.