If business can deliver the same product with a smaller team, great!
And yes this has been happening for a while, even if not everywhere.
In enterprise consulting, projects that would require a team of 20 devs on average, now have about 5.
Moving away from on-prem, managing own cloud infra to managed containers, to serverless, SaaS and iPaaS ready made products, and offshoring naturally.
All contributed to ever decreasing team sizes.
Now AI based tooling is added to that cocktail, reducing even further the team sizes.
The only folks doing well in the end, are the employees of AI companies, without moral issues contributing to the industry downfall, because the CEO themselves aren't the ones coding and pirating human culture.
There's CVs out there that would've made recruiters go mad 36 months ago sending their hundreth application.
I'm a freelancing consultant since 5 years, I've had 2 major customers now for 3+ years. I have a very good pulse of the market: being good, or being even very good and being among those that brings AI and automation to organizations will not save our jobs.
In fact, AI has sped up so much the work that 2 out of 5 people in my current team are being let go: I find it absurd, our productivity has more than doubled over the last years and we've made ourselves redundant. Money is money, I'm on one side making non-tech workers redundant (people whose job was menial boring office stuff), and building the systems that will make myself redundant.
That means software engineers better start getting creative. If you think your job is to wait for a PM to assign you a well-written researched ticket, you're done. Your job is now to figure out how to make these machines (computers) do whatever we need them to do safely, quickly, at scale, and correctly by applying all your knowledge of computer science and the engineering field of software engineering to an AI prompt.
Also, the increase in output is meaningless when the amount of customers doesn't scale in similar size.
Then there are the constraints of physics, there are so many humans in the planet that actually want to pay for a specific product, or consulting services.
This is a "you" problem for the math establishment, not a problem for the AI companies.
This was a talk given to other mathematicians about the future of mathematics; sounds like only "you" have a problem for some reason.