There is another problem. For developers, productivity means "functionality produced per hour of work", but that's not what productivity means for businesses. To them, productivity means "money produced per hour of work", and because AI costs money, it is this number that needs to go up (not quite, as it's more "value" than money, but until the economy adjusts they are similar). Even if we could considerably reduce the time between releases and/or do it with fewer people at scale across the industry, for it to pay off, we'll need to see a corresponding rise in demand for software and/or features.

Another option is that lower software costs would significantly reduce the cost of whatever non-software product the software supports (manufactured good, electricity, services, telecom etc.) but I don't know in which industry the cost of software is a large portion of the overall product cost.

And there's another thing. A company that makes tractors can't produce food without land. A company that makes metal machining equipment can't make cars without the raw materials. But a software company that makes software that automatically makes software could just produce the result software itself rather than sell the software-making software. If AI ever reaches the point it makes software at a marginal cost that's not much higher than the cost of the AI itself, what would be the incentive of selling that AI?