The question I ask myself: Is there a large and still-unmet demand for software engineering worldwide. AKA is the market supply-constrained by a large-enough amount?
If so, I imagine engineers will be more productive with AI (and wages will go down, or at least stop growing somewhat), but the demand for software engineers will stay strong.
If not, then engineers being more productive would mean fewer engineers can meet the global demand for software engineering work and I would expect to see the demand for software engineers reduced.
Development has gotten much faster since the 2000s: better languages, better IDEs, better libraries, better design practices, better documentation, better online resources, better (faster, less buggy) target platforms. I remember when I was first writing code in the early 2010s writing Objective-C in Xcode 3 with manual memory management. Developer productivity has exploded more than most people realize.
And yet developers have always been in demand. We just have a lot more programs now, and a lot of very-similar and/or niche programs. All the random libraries on npm, Rust, Haskell, etc. the various crypto-currencies, static/dynamic webpage builders, 3 separate JavaScript runtimes. People start businesses and actually get funding for these libraries. And it seems like a lot of companies want almost the exact same product, some "business solution" or "cloud solution", but they have specific reasons existing solutions aren't acceptable (performance? security? some feature?), so they pay $200k+ salaries for developers to build them.
But will this always be the case? Even ignoring GPT4, we don't really need these developers who are working on niche and similar projects; we are having a harder time getting hired right now with the economic downturn. And still, it's entirely possible this growth has a limit, and GPT4 will make developers turn ideas into working products faster than people can come up with them.
If so, I imagine engineers will be more productive with AI (and wages will go down, or at least stop growing somewhat), but the demand for software engineers will stay strong.
If not, then engineers being more productive would mean fewer engineers can meet the global demand for software engineering work and I would expect to see the demand for software engineers reduced.