Comment by jostylr

It is all about competition which is, at its root, differentiation. The productivity can lead to increased wages for workers if workers are able to jump jobs because of this stuff. Not sure that it works like that with the AI tools. It could also work if programmers started leaving jobs to do their own thing. Programmers need to get scarce to bump up salaries. As for companies, their profits are also linked to competition. If they have equally good competitors, then extra productivity is likely to lead to lower prices to keep attracting customers. The customers profit. If they are more unique, then the extra productivity can lead to higher profits as they shrink their costs (fewer programmers, earlier deliverables, better customization to what customers want). All of these forces take time to shake out.

The most likely path is to enable a million independent projects to flourish and to find unserved niches that lead to a good, but not exorbitant, income, at least for a time.