During Google’s third-quarter earnings call on Tuesday, CEO Sundar Pichai shared a groundbreaking update on the expanding role of artificial intelligence (AI) in software development at the company. According to Pichai, AI is now responsible for generating over 25% of the new code used in Google’s products, with human engineers overseeing and refining these AI-generated contributions.

“We’re also using AI internally to improve our coding processes, which is boosting productivity and efficiency,” Pichai said. “Today, more than a quarter of all new code at Google is generated by AI, then reviewed and accepted by engineers. This helps our engineers do more and move faster.”

This development underscores Google’s deepening integration of AI into its operations, particularly in the coding and software development areas. Pichai reaffirmed the company’s ongoing commitment to advancing AI technologies, which have become central to both its product development and internal workflows.

In February, it was revealed that Google had introduced a powerful AI model called Goose for internal use. A derivative of Google’s Gemini large language model, Goose is designed to assist software developers by generating code, answering technical queries, and modifying code based on natural language instructions. By leveraging Google’s extensive engineering knowledge accumulated over the past 25 years, Goose enables engineers to work more efficiently and effectively.

This move is part of Google’s broader strategy to incorporate AI throughout its product development lifecycle, enhancing the speed and quality of its software development processes.

Google’s embrace of AI for software development is not an isolated case. A 2023 survey conducted by GitHub found that 92% of developers in the United States are using AI-powered coding tools in both professional and personal projects. The majority (70%) of developers believe AI-assisted coding gives them a competitive edge, offering benefits such as improved code quality, faster completion times, and more efficient incident resolution. Furthermore, over 80% of developers expect that AI tools will enhance collaboration within teams, making it an essential part of modern software development.

As AI becomes an integral part of coding, it is reshaping the technology job market. Jack Dorsey, former CEO of Twitter and current head of Block, predicted back in 2020 that AI would soon take over many programming jobs. “A lot of the goals of machine learning and deep learning is to write the software itself over time, so a lot of entry-level programming jobs will just not be as relevant anymore,” Dorsey said in a podcast with Andrew Yang.

This prediction is starting to materialize. According to a recent report from the Wall Street Journal, there has been a noticeable decline in the demand for traditional software development roles. Job listings for software developers on Indeed.com are down by 30% compared to pre-pandemic levels, with routine coding and technical tasks increasingly being handled by AI tools. As AI enhances productivity and reduces the need for large human workforces, the demand for entry- and mid-level positions in software development and IT support is shrinking.

The increasing adoption of AI in coding has led to a significant shift in the tech job market. A 2024 Work Trend Index Annual Report by Microsoft and LinkedIn highlights a strong preference among employers for candidates with AI skills. The report revealed that 66% of business leaders would not consider applicants without AI expertise, and 71% would prefer a less experienced candidate with AI skills over a more seasoned professional lacking them.

As AI continues to redefine the role of software engineers, there is growing demand for professionals who are not just skilled in traditional coding but also proficient in overseeing AI-generated code and integrating AI into software systems. Engineers will need to evolve into AI-literate problem solvers who understand the ethical considerations of AI use, as well as how to innovate within this new paradigm.

The rise of AI in software development is fundamentally altering the nature of the profession. While traditional coding expertise will remain important, engineers will need to shift their focus toward managing and optimizing AI-generated code. This new skill set will combine technical proficiency with the ability to navigate complex AI systems, evaluate their outputs, and ensure they align with ethical and performance standards.

As AI takes on more routine coding tasks, software engineers will move from writing code to overseeing the AI tools that write it. This transformation represents a significant opportunity for those in the tech industry to adapt and position themselves at the forefront of the AI-driven future.

By Impact Lab