How AI Is Disrupting Tech Jobs, 25% of Code Now Written by AI at Amazon and Microsoft

Introduction

The technology sector’s brutal job cuts continue into 2025. With the tech industry being roiled by mass layoffs and hiring freezes, the leading culprit to be blamed for this grim picture is the technology itself. A recent Pew study found that Americans think software engineers will be most affected by generative AI, according to The Atlantic. GetMyIndia.com

The report reveals the major tech giants-including Google’s parent company Alphabet and Microsoft, now depend on AI to generate nearly 25% of the code. With AI generative tools becoming deeply integrated into software development workflows, it has are serious concerns about the future of entry-level tech jobs in the US.

How AI Tools Are Being Used 

AI coding tools like GitHub Copilot and Amazon CodeWhisperer act as virtual coding assistants, helping developers write code faster and more efficiently. They can autocomplete lines, suggest functions, generate boilerplate code, and even detect bugs. These tools are especially useful for repetitive tasks and speeding up development cycles. Rather than replacing developers, they enhance productivity by handling routine work, allowing engineers to focus on more complex logic and system design. As adoption grows, AI is becoming a key part of the modern software development workflow.

Shift in Tech Jobs amid AI boom

The growing role of AI in the field of software development is showing up in employment data. Gropp is contending with a weak job market for recent college graduates in general and the tech sector in particular. Even though employment for 22-to-27-year-olds in other fields has seen a slight increase over the past three years, jobs for computer-science and math jobs in that age group have fallen by 8 percent, the report reveals.

Executives at Microsoft and Google’s parent company Alphabet, have already confirmed the impact of AI on their code output. Recently, Amazon CEO Andy Jassy issued a stark message to employees: Artificial intelligence will reduce the company’s corporate workforce in the coming years. “We will need fewer people doing some of the jobs that are being done today,” Jassy wrote, citing expected efficiency gains. He noted that AI will also create new kinds of roles, but the net effect is likely to be a leaner corporate staff. Jassy wrote that employees should learn how to use AI tools, experiment, and figure out “how to get more done with scrappier teams.”

A 2025 Pew Research Center survey found that 48% of Americans believe software engineers will be among the professions most affected by AI in the coming years. That’s a higher percentage than for teachers, journalists, or accountants.

“We know AI is affecting jobs,” Rusinkiewicz, from Princeton, told The Atlantic. “It’s making people more efficient at some or many aspects of their jobs, and therefore, perhaps companies feel they can get away with doing a bit less hiring.”

Software Jobs seen as most at Risk

These fears aren’t just limited to hiring managers and academics. A 2025 Pew Research Center survey found that 48% of Americans believe software engineers will be among the professions most affected by AI in the coming years. That’s a higher percentage than for teachers, journalists, or accountants. While manual labor was long seen as most vulnerable to automation, high-skilled roles are now increasingly at risk, starting with tech.

Looking Ahead to 2025

As we move toward 2025, the influence of AI in software development is expected to grow even more. With tools already generating 25% of code at companies like Amazon and Microsoft, this percentage may rise as AI models become more advanced and reliable. However, rather than eliminating software engineering jobs, AI will likely transform them. Developers must shift focus from routine coding to tasks requiring human judgment, like system design, architecture, ethical decision-making, and AI oversight. Skills in prompt engineering, AI model integration, and cross-functional collaboration will be in high demand. The key for developers will be to adapt and evolve, treating AI as a partner rather than a competitor. In this new landscape, those who embrace change and reskill accordingly will continue to thrive in a redefined, AI-enhanced software industry.

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How AI Is Disrupting Tech Jobs, 25% of Code Now Written by AI at Amazon and Microsoft
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