Instead of fearing job loss, focus on skills in industries with elastic demand. When AI makes workers 10x more productive in these fields (e.g., software), the market will demand 100x more output, increasing the need for skilled humans who can leverage AI.

Related Insights

The common fear of AI eliminating jobs is misguided. In practice, AI automates specific, often administrative, tasks within a role. This allows human workers to offload minutiae and focus on uniquely human skills like relationship building and strategic thinking, ultimately increasing their leverage and value.

AI's ability to generate ideas and initial drafts for a few dollars removes the high cost of entry for new projects. This "ideation" phase, once proven successful, often justifies hiring human experts for full execution, creating net-new work that was previously unaffordable.

The primary economic incentive driving AI development is not replacing software, but automating the vastly larger human labor market. This includes high-skill jobs like accountants, lawyers, and auditors, representing a multi-trillion dollar opportunity that dwarfs the SaaS industry and dictates where investment will flow.

Increased developer productivity from AI won't lead to fewer jobs. Instead, it mirrors the Jevons paradox seen with electricity: as building software becomes cheaper and faster, the demand for it will dramatically increase. This boosts investment in new projects and ultimately grows the entire software engineering industry.

Don't hire based on today's job description. Proactively run AI impact assessments to project how a role will evolve over the next 12-18 months. This allows you to hire for durable, human-centric skills and plan how to reallocate the 30%+ of their future capacity that will be freed up by AI agents.

As AI automates technical and mundane tasks, the economic value of those skills will decrease. The most critical roles will be leaders with high emotional intelligence whose function is to foster culture and manage the human teams that leverage AI. 'Human skills' will become the new premium in the workforce.

AI makes tasks cheaper and faster. This increased efficiency doesn't reduce the need for workers; instead, it increases the demand for their work, as companies can now afford to do more of it. This creates a positive feedback loop that may lead to more hiring, not less.

The narrative of AI destroying jobs misses a key point: AI allows companies to 'hire software for a dollar' for tasks that were never economical to assign to humans. This will unlock new services and expand the economy, creating demand in areas that previously didn't exist.

Contrary to the idea that AI will eliminate the need to code, it's making coding a crucial skill for non-technical roles. AI assistants lower the barrier, allowing professionals in marketing or recruiting to build simple tools and automate tasks, giving them a significant advantage over non-coding peers.

Experience alone no longer determines engineering productivity. An engineer's value is now a function of their experience plus their fluency with AI tools. Experienced coders who haven't adapted are now less valuable than AI-native recent graduates, who are in high demand.