No this doesn’t make sense either. Why would Amazon‘s profits go down if their engineers are cheaper?

In AWS's case - if AI can replicate what AWS offers as a value add - then you migh go with a cheaper cloud provider.

Like, you have the option of either using AWS RDS, or hiring a DBA and devops who administer your DB, and set up backups, replication and networking.

If AI (or a regular dev with the help of AI) can do that, it might mean your company decides to take the administrative burden on, and save the money.

I didn't say profits down. The OP was talking about revenue for some companies potentially declining.