Why AI hasn't replaced software engineers, and won't

> What matters is that it's personalized, free, and isn't an invasive surveillance/advertisement platform

This sounds like an utopian dream. The surveillance is baked into this AI built to create the software. It will be built into the platform used to host and run the software. Why wouldn't AWS want that sweet sweet data to train their models. How many people can really self host? You seem to be overestimating average people's ability to learn how to self host.

Its like saying "we have vaccine related information at our finger tips so there are no longer going to be vaccine skeptics". Existence of information doesn't necessarily lead to application of such information.

The other thing which I feel these kinds of utopian dreams miss is that if something is commoditized and you can't really tell the difference between software A and B - because of AI, there is more incentive for companies to form cliques and raise prices while still delivering commoditized terrible software.

Sure, there's a place for disposable, ultra custom apps that AI can cover. I vibecoded one to help me clean up my local media with a tinder-like UI for discarding/keeping photos, for example.

That's not going to substitute many engineers though, for two reasons.

One is that "app that helps a single-digit number of people" was never a viable business in the first place.

The other is that you can't substitute all corporate software with a combination of disposables. Some stuff is complex even if the "surface features" are small in number. Say for example that you want a custom web browser, "surfing the internet" might feel like a single feature for a non technical person but it's made of many moving parts inside.

“ However, the top devs will earn more than ever. ”

No they won’t. Productivity does not determine the wage rate.

> I think, is that everyone who needs small software to manage a todo list or synchronize files, or whatever "normal" people do, will end up with bespoke personalized software written by their own AI

People can't be bothered to cook for themselves, and often order crappy, unhealthy food that costs 10 times as much just so they don't have to cook.

Now they're going to build their own software every time they think they need an app..?

In every regime where we have meaningful longitudinal data about the long run outcomes of introducing technology that is superhuman at some or all of a human's job, the combination of the machine and an expert human outperforms either alone, with probably the clearest parallel structurally being chess, though this is true of all of the hard sciences and all of frontier engineering (semiconductor design).

There will never be a human who can beat Stockfish ever again, digital intelligence has simply accelerated away from human intelligence in that regime.

There is no other human alive who can beat Magnus Carlsen. Stockfish crushes Magnus.

But Magnus and Stockfish playing together crush any conceivable combination of just human or just computer. And no serious chess player would train without a computer or decline the assist if the contest mattered.

And this is in a regime where the dominance of the machine is total, structural, and permanent, far more so than any existing AI's impact on the outcome distribution of any recent development on any white-collar knowledge work include even the most sophisticated software engineering done anywhere. The demonstrated as opposed to completely conjectural lift on SWE outcomes with Claude Code (and even that's controversial, let's take the high end of the claims) is real and changes the geometry of the situation not at all.

Nor is there any apparent limit on how much arbitrarily sophisticated software the world has an appetite for, you could take someone at the absolute top of the field (I'm a big Carmack fan let's go with Carmack), and give him cutting edge AI assist, and the best program a person can write just got better. Sweet!

And this applies anywhere from junior to Carmack: however good they were, they're better now. We can build harder things. We can have extreme quality software where previously we were stuck with some Electron jank, across the board. Does anyone think Slack would lose market share if it went back to its gaming roots and was gorgeously 3D accelerated on every surface against a backend that could instant and perfectly synchronize an arbitrary workspace on a flakey cell connection and never have an outage or data loss? Or would they rapidly shred the remaining competition and become the favored tool of everyone?

In adversarial regimes like trading or drone warfare, you better believe the best hackers have arbitrary assist if you're going to play against them.

I think the thing to be hand-wringing about isn't AI, it's that capitalism no longer seems to be an adversarial regime. The worst software rivalries in the industry look more like a pillow fight than a battle of will.

And if there is any lasting reduction in headcount, it's leaders lacking ambition agreeing tacitly to not play very hard, not AI, that is to blame for that. None of the HFT shops nor amusingly the frontier labs have reduced their hiring or compensation at all. If anything, it's going up!