I have some healthy skepticism on this claim though. Maybe, but there will be a point of diminishing returns where these refactors introduce more problems than they solve and just cause more AI spending.

Code is always a liability. More code just means more problems. There has never been a code generating tool that was any good. If you can have a tool generate the code, it means you can write something on a higher level of abstraction that would not need that code to begin with.

AI can be used to write this better quality / higher level code. That's the interesting part to me. Not churning out massive amounts of code, that's a mistake.