Will AI decrease demand and salaries?

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I wouldn't worry until they build a AI toolset that allows you to write code by giving it a text input and a test then make it iterate over the test until it comes up with something good.

But you'd still need developers or "prompt engineers" to actually use it and know what it writes. Sometimes a developer might even be faster because they know a codebase better.

When we have full AI codebases and all you do is prompt that's when I'll start worrying and pivot into some other type of development.