How AI Tools Are Reshaping the Coding Workforce

Leaner development teams and a higher bar for hiring new roles are some of the changes coming

- Isabelle Bousquette

After years of hype and panic over how many jobs AI will extinguish or replace, it's clear the technology is bringing some big changes to the coding workforce.

AI coding tools, which can automate large portions of code development, emerged as an early generative AI use case, driving double-digit percentage efficiency gains and helping more code get written faster. Microsoft-owned GitHub Copilot, one of the more popular coding tools, has been adopted by more than 77,000 organizations in the roughly two years since its release, Microsoft said in its fourth-quarter earnings.

The tools are designed to supplement rather than replace human workers and their output still needs to be double-checked, companies say. But their growing adoption is quickly reshaping the size and scope of the development teams.

"2025 is going to be a very fascinating year with some of these tools, as we start to scale," said KeyBank Chief Information Officer Amy Brady. "We're not far enough on the journey where I can confidently say it's going to replace all entry-level code generation. Do I think it could replace some? Yes."

Companies using the tools say they can get the same amount of work or more done with leaner teams. Automating the mundane boilerplate coding lets developers focus on complex problem-solving and skills associated with using the AI tools, they say. And when hiring developers, companies say they can be more tempered and selective than several years ago when the talent market was so tight they were desperate to get bodies into seats.