What could happen is a reduction in the amount of programs used, with a smaller set of more sophisticated programs doing more work. This maps to what we saw pre-industrial revolution: lots of small family operations doing menial manufacturing work (woodworking, textiles, cooking). This got replaced by large factories. A smaller amount of companies producing the a larger volume of goods. With AI, a smaller group of engineers could handle more local complexity, thus allowing more sophisticated, general purpose software to be created, deleting the sea of small pieces of software we have today.

Will this means many will be jobless? No, they would do other things. They'd be using this software to support society, operating at a high level. Think low-code, but incredibly complex stuff; just not raw code anymore. Instead of making circuit boards out of descrete components, you now slap a few ICs on a board with some supporting passives and the work is then all done in software. Engineers use more high-level components rather then welding and machinijng things from scratch; you buy T-slot profiles and bolts rather than casting and milling steel from billets.

So the job of programmer may disappear simmilar to how we don't have bakers anymore, baking is done in factories, operated by a small staff. Current-day programmers will then increasingly shift to whatever high-level constructs we'll come up with, this high level work will be supported by the base infrastructure that those who still touch raw code will build.

From what I have observed in my team, the opposite is occurring. Everyone is just making their own software because the barriers are so low. There is a lot less sharing and coordination going on, and the bottleneck moved to having the hardware available to run it all, so now we’re spending a lot more money on compute.