Software engineers fear about job loss in the wake of the deployment of artificial intelligence (AI) across industries.
AI job for software engineers
Most of the technology companies are spending on AI and job cut is happening globally. Tech companies have slashed more than 124,000 jobs as of August 20, 2024, taking the overall tally of layoffs since 2022 to 428,449.
Experts at Gartner emphasize that AI will not diminish the need for human engineers because human expertise and creativity will remain important for business.
In fact, Generative AI (GenAI) is poised to reshape the engineering workforce, with 80 percent of software engineers needing to upskill by 2027, according to research by Gartner.
Philip Walsh, Senior Principal Analyst at Gartner, commented on the evolving role of engineers: “While AI will transform software engineering, human expertise will always be essential to deliver complex, innovative software.”
Key Impacts of AI on Software Engineering
Initially, AI will serve as a tool to increase productivity, particularly among senior developers with well-established engineering practices. These tools will augment existing workflows and allow for modest efficiency gains.
In the coming years, AI agents will enable developers to offload and automate more tasks. This will signal the onset of “AI-native software engineering,” where most code will be AI-generated. The role of developers will shift to guiding AI tools through natural language prompt engineering and retrieval-augmented generation (RAG).
“Software engineers will adopt an ‘AI-first’ mindset, focusing on steering AI agents toward the most relevant context and constraints for a given task,” Philip Walsh said.
In the longer term, AI’s growing capabilities will drive demand for a new class of professionals, the AI engineer. These engineers will blend skills in software engineering, data science, and machine learning to build AI-empowered software.
Growing Demand for AI Engineers
A Gartner survey of 300 U.S. and U.K. organizations revealed that 56 percent of software engineering leaders see AI/machine learning (ML) engineers as the most in-demand role for 2024. Leaders identified applying AI/ML to applications as the largest skills gap in their teams.
To address this, companies will need to invest in AI developer platforms and upskill their data and platform engineering teams. These platforms will enable organizations to integrate AI into enterprise solutions more efficiently, enhancing their ability to scale AI capabilities.
“Building AI-empowered software will require skilled professionals who can combine software engineering, data science, and AI expertise,” Philip Walsh said.
Another Gartner report said 30 percent of enterprises will automate more than half of their network activities by 2026.
Benefit from AI
World Bank Group and the International Labour Organization researchers found that generative AI (GenAI) could have transformative effects on jobs and livelihoods in Latin America.
Salaried and self-employed workers – such as hairdressers, salespersons, architects, or real estate agents – and those working in education, health, or personal services are more likely to benefit from the transformative effects of GenAI.
Governments should implement policies to protect jobs, enhance productivity, and maximize the transformative potential of GenAI to promote more inclusive growth and sustainable development.
26-38 percent of jobs in Latin America and the Caribbean could be exposed to Generative AI, a report from WorldBank indicated.
Generative AI could result in a productivity-enhancing transformation of 8-14 percent of jobs, with a higher likelihood in urban, educated, and formal sectors, and among higher-income earners.
About 2-5 percent of jobs are at risk of full automation due to the current capabilities of GenAI.
Up to half of the jobs that could improve productivity with GenAI – about 17 million jobs – are hindered by gaps in digital access and infrastructure.
AI in India
India’s artificial intelligence market is forecast to reach $17 billion by 2027, growing at an annualised rate of 25-35 percent between 2024 and 2027, IT industry body Nasscom and consulting firm BCG said.
India has over 420,000 employees who currently hold positions in AI job functions, said the report, adding that the country also has the highest skills penetration with respect to AI.
The subsequent demand for AI talent in India is expected to grow at an annualized rate of 15 percent until 2027. 90 percent of the top 25 technology service providers have made large-scale Gen AI skilling commitments.
AI impact on Philippines’ IT jobs
Philippines’ IT and Business Process Management (IT-BPM) industry is expected to grow its workforce by 7 percent to 1.82 million in 2024 despite concerns that AI could reduce jobs. Philippines’ IT-BPM industry revenues will grow 7 percent to $38 billion, Reuters news report said.
Jack Madrid, president and CEO of the IT and Business Process Association of the Philippines (IBPAP), said: “Generative AI will not replace people, but people who use Gen AI will replace those who don’t.”
AI has not yet significantly impacted the industry but highlighted the need for workers to upskill in areas like AI to remain competitive.
Growth Driven by Demand and Skills Development
As demand from North American clients continues to drive growth, Jack Madrid urged the industry to focus on upgrading the skills of its workforce. The industry has targets for 2028, aiming for job numbers between 2.14 and 2.55 million and revenues as high as $59 billion.
Jack Madrid emphasized the need for workers to acquire in-demand skills such as IT support, data analytics, cybersecurity, and AI.
AI’s Mixed Impact on Jobs
While some fear AI-driven job losses, a June survey of IBPAP’s 415 members showed a mixed picture: 8 percent of companies reported a reduction in headcount due to AI, while 13 percent saw job increases. This suggests that AI’s overall impact may be more complex than anticipated, with automation potentially enhancing productivity and creating new opportunities rather than causing widespread job losses.
Looking Ahead
As AI’s role in software engineering continues to evolve, the workforce will need to adapt. While AI tools will drive efficiency, the need for skilled engineers will grow, with an increasing focus on mastering AI-native techniques and processes.
Baburajan Kizhakedath
