Probably the other way around. The idea behind outsourcing is that you move the generic labor abroad and keep coordination and control onshore. AI can now do the generic labor for even less, so you'll likely see small onshore teams using AI instead.

AI won't end silicon valley, but could still shrink it significantly.

Unless, of course, new opportunities arise and the economy grows. This is not even unlikely as we've seen amazing growth the last 25 years, even.

In which case your sentiment is probably correct. And now that I think of it, this is potentially very bad news for the outsourcing companies in countries like India. They also have less money to spend on tokens.