Specific industries and job roles have undergone seismic shifts driven by groundbreaking innovations that have changed our operations. These shifts have forced industries to adopt new paradigms, forcing people and processes to adapt quickly.
With the announcement of Devin, an autonomous AI software development agent created by Cognition AI, many are now questioning how software development roles—especially those within IT services—will evolve. Devin won’t be the last of its kind. As we've seen over the past year, the development of AI tools and technologies in software engineering continues to accelerate, leading to higher productivity and efficiency.
Historically, roles that don’t require human decision-making have been the first to be automated. For instance, elevator operators once played a vital role in navigating people between floors, but technological advancements shifted value away from operators to those manufacturing and maintaining elevator systems. Similarly, factory assembly lines have largely been automated, reducing the need for manual labor and enhancing precision through robotics.
However, knowledge-based roles are different, particularly those that rely on creativity and the ability to adapt to changing business needs. Take investment bankers as an example: 50 years ago, they spent hours manually creating charts, presentations, and financial models. Today, technology has taken over those tasks, but the value and complexity of their work have only increased. With automation, bankers can focus on higher-level strategy and deliver more significant business impact.
Software engineers may find themselves in a similar position. Fifty years ago, only a few businesses relied on software, each employing thousands of engineers. Today, millions of companies depend on software to drive their operations, and the impact of a single software engineer is far more significant than ever before. Engineers increasingly move "upstream," shaping business architectures and driving innovation with fewer resources.
AI copilots and autonomous development agents will likely become more prevalent in the next decade, enabling businesses to adopt new digital tools acceleratedly. Yet, despite these technological advances, the demand for skilled engineers and IT professionals remains high. Software development professionals must understand and leverage these tools to transform businesses and drive growth.
Elaxtra Advisors is an M&A and value-creation advisory firm that assists institutional investors, private equity-owned platforms, and strategic acquirers invest and create value in worldwide technology services companies. Please contact us to explore potential partnerships.