If AI is being used to lower salary burdens, it categorically is partially or wholly replacing developers.
Meanwhile, elsewhere in this discussion, you can read examples of people who have used AI entirely to build their product. Previously they'd have had to hire a developer or become one themselves. This suggests to me it is indeed replacing developers - just not where you are choosing to look.
No, it's the economy that is shifting and the reason developers are getting fired. This causes wage lowering. AI is the excuse that let's companies corporate-speak around the economy.
Work lost by freelancers and contractors to AI can't be brushed out of sight with a 'No' and an unrelated vague assertion that the economy is shifting.
Freelance work is like car lanes, the more you build the more demand you have. There's no satiating the need for software. Lowering the bar to produce software will just motivate more companies and people to digitalize/automate more things.
You're equally handwaving and vague asserting AI replacement. It's super obvious that existing layoffs are absolutely not justified by actual AI replacements.