AI replaces 30% of coding jobs while tech leaders debate future impact

Tech leaders remain sharply divided on whether artificial intelligence will trigger widespread white-collar job losses, with predictions ranging from minimal disruption to unemployment rates reaching 20% within five years. While some executives like Dario Amodei, CEO of Anthropic, warn of significant job displacement, others including Nvidia’s Jensen Huang argue AI will only eliminate jobs “if the world runs out of ideas,” highlighting the uncertainty surrounding AI’s true impact on the workforce.

What you should know: Major tech companies are already implementing AI to handle tasks previously done by humans, with measurable results across coding and other white-collar functions.

• Amazon used an AI developer agent to upgrade 30,000 software applications in six months, a project that would have taken 4,500 human developers a year to complete, saving the company around $250 million.
• Microsoft CEO Satya Nadella reported that 20% to 30% of the company’s code is now generated by AI.
• Meta CEO Mark Zuckerberg said around half of the company’s code development would be done by AI by next year.
• Salesforce CEO Marc Benioff told Bloomberg the company uses AI for about 30% to 50% of its work.

The big picture: The emergence of “agentic AI” systems marks a significant shift from simple chatbots to tools capable of handling complex, multi-step tasks without constant human guidance.

• Unlike traditional chatbots that respond to single questions, agentic AI can code websites, research topics, and compile presentations autonomously.
• OpenAI recently launched an agent mode for ChatGPT that can accomplish tasks on behalf of users.
• Anthropic introduced a model in May that claims to work independently for almost an entire workday.

Why this matters: AI adoption faces fewer barriers than previous technological transformations, making widespread implementation more likely and rapid.

• “AI workers are just software, and so you don’t need to buy expensive physical machinery,” said Steven Adler, a former OpenAI researcher.
• The technology can be upgraded easily and deployed through cloud services with minimal friction.
• Unlike industrial automation, AI can be readily applied to knowledge work without significant infrastructure investment.

What experts think: Industry leaders express mixed views on AI’s job impact, with many emphasizing transformation rather than elimination.

• “Most tasks for most jobs can’t be automated,” said Yann LeCun, Meta’s Chief AI Scientist, in a LinkedIn post.
• Demis Hassabis, CEO of Google DeepMind, told CNN that an AI “jobpocalypse” is among his minor concerns about the technology’s impact.
• “I think that there will be some displacement. I think there’ll be new job categories that emerge,” said Gaurab Bansal of Responsible Innovation Labs. “I think we’re looking at a complex reshaping, rather than a straightforward elimination.”

Key concerns: Some experts worry about premature workforce reductions driven by AI hype rather than actual capabilities.

• Yacine Jernite of Hugging Face expressed concern that corporate leaders might “fire people” based on AI perceptions rather than proven technology capabilities.
• Former OpenAI researcher Steven Adler expects many white-collar workers will see lower wages as AI augments their jobs, creating “an oversupply of labor, which pushes wages down.”
• More than half of Americans say they’re worried about AI’s impact on the workplace, according to a February Pew Research Center survey.

The adaptation response: Companies and governments are investing in retraining programs to prepare workers for an AI-integrated future.

• Tech giants are partnering with teachers’ unions to build an AI training academy in New York City.
• The White House launched a pledge for companies committed to investing in AI training, signed by 68 firms.
• Dennis Woodside, CEO of Freshworks, said his company is shifting workers from reactive customer support to more hands-on client work as AI handles routine requests.

Bottom line: The transition period ahead may bring significant uncertainty and economic disruption, requiring new policy frameworks to ensure benefits extend beyond tech companies.

• “We need a new social contract for this era,” Bansal said. “The bargain we have between workers and sort of the economy is born of a different technological era.”
• Industry experts believe the changes will unfold over a “decade-ish, maybe more, period of uncertainty.”