NEW YORK: Artificial intelligence (AI) could, in time, create more jobs for software developers rather than eliminate them, according to investment bank Morgan Stanley.
"The rise of AI-powered coding tools is not eliminating jobs – it's creating new opportunities for developers and software companies alike," Morgan Stanley writes in a new report, pointing to a recent survey of chief investment officers that suggests companies are set to significantly increase spending on software development.
Morgan Stanley said its survey of 70 US-based IT executives and 30 European counterparts showed planned spending on software development is higher than on areas such as IT services and hardware.
"Contrary to current market concerns that AI will replace human developers, we believe it will enhance productivity and lead to more hiring," said Sanjit Singh of Morgan Stanley, who foresees growing demand for skilled developers as businesses develop more complex applications.
The US Bureau of Labor Statistics foresees a 1.6% annual increase in software developer hires up to 2033, while other estimates point to a near double-digit percentage rise.
Either way, according to Singh, "the software developer workforce should expand significantly."
"The results highlight the resilience of software investment, even in uncertain times," said Singh’s colleague Keith Weiss.
The jury remains out on how AI will affect work and recruitment across multiple industries - including whether it will see some jobs phased out and whether it will increase or reduce productivity.
In a mid-2025 report, a team at research organisation METR (Model Evaluation and Threat Research) found AI makes software developers work more slowly.
Stanford University published research in February showing AI largely hinders workers of experience and know-how while helping less capable colleagues. The effects of AI on productivity "vary significantly," the researchers said. – dpa
