Yes. It will go like that: “should we hire a senior dev and a junior dev? Nah, a senior dev plus GPT5 subscription should be enough to do the workload”. And it will be enough.
I think you're wrong honestly. I think the nature of Software Engineering is something else. Automation and increasing efficiency. All the tools are for this. AI is just a tool. Basically it will increase expectations for all of the levels (Juniors to Principals). There won't be less roles. It's just SWE will be required to do more.
I really hope I’m wrong. Can you imagine the massive unemployment and social chaos if I’m not? I’m rarely wrong about AI though. For example, five years ago I predicted (in a comment here on HN) Turing test will be passed within two years. People called me bat shit crazy, said “in 50 years“, “not in my lifetime”, only one said “in 10 years”. GPT3 happened a year later, and after GPT3.5 people suddenly forgot about the importance of TT as a milestone. I guess it no longer requires “AI”.
I’m a Principal level SWE, and a team lead. I have junior devs on my team. I only need a similar increase of intelligence from GPT4 as 3.5–>4.0 to replace them.
It's strange. I'm in a similar position. I need more of them with more of a tools like GPT-N-whatever just to achieve more. Maybe your market niche is a bit small that you'll get to the ceiling and no development needed. Which is ok.
Anyways I hope you're right to be honest. And let's see.