Sam Altman Warns AI Could Cut Demand for Software Engineers

OpenAI CEO Sam Altman warns that the growing use of artificial intelligence (AI) could transform the job market for software engineers. In a recent interview with Ben Thompson of Stratechery, Altman explained that AI-driven automation is already changing the coding process, with some companies generating more than 50% of their code using AI. While AI is enhancing productivity for software engineers, Altman believes the demand for human coders will decline over time as AI technology advances.

AI Is Already Writing Code, But Agent-Based Coding Is the Next Frontier

Altman pointed out that AI-generated code is increasingly mainstream, with many companies now using AI for at least half of their coding tasks. He believes the true transformation in development will come with "agentic coding," where a more advanced form of AI can autonomously handle complex programming without human involvement. However, he emphasized that this level of AI capability is still in its infancy and not yet fully developed.

“My basic assumption is that each software engineer will just do much, much more for a while. And then at some point, yeah, maybe we do need less software engineers,” Altman said during the interview.

OpenAI's Business Strategy: AI-Driven Tools Instead of Advertising

In addition to talking about AI’s impact on software engineering, Altman also highlighted OpenAI’s business approach. Unlike many tech companies that depend on ad revenue, OpenAI is prioritizing the creation of premium AI-powered tools. He shared his preference for monetizing AI automation instead of using an ad-based model.

“Currently, I am more excited to figure out how we can charge people a lot of money for a really great automated software engineer or other kind of agent than making some number of dimes with an advertising-based model,” he explained.

Students Should Prioritize Mastering AI Tools Over Traditional Coding Skills

As AI continues to play a larger role in coding, Altman believes that aspiring professionals should focus on mastering AI tools instead of just learning traditional coding. He pointed out that the key skills for the future won't be limited to specific programming languages, but rather an ability to adapt and a strong problem-solving mindset.

“The obvious tactical thing is just get really good at using AI tools,” he advised. “The valuable thing I learned in school is the meta ability to learn, not any specific thing I learned.”

As AI rapidly transforms the industry, Altman’s perspective implies that the ability to adapt and collaborate with AI could become the most valuable skill in the future job market.