The Future of Work: Adapting to AI Agents in Engineering

As I reflect on the recent announcements from OpenAI, I can’t help but feel a mix of awe and concern. On one hand, the rapid advancements in artificial intelligence are undeniably exciting. On the other hand, they’re forcing us to reconsider so much of what we thought we knew about the workforce. A key development that caught my attention is OpenAI’s plan to roll out AI agents capable of performing tasks that are currently done by junior engineers. This feels like a seismic shift in the world of work, particularly for industries like IT, where engineers have long been the backbone of innovation. As AI continues to grow more powerful, I find myself thinking deeply about the broader implications for workers, businesses, and the very nature of work itself.

The promise of AI agents is clear: they could make certain aspects of engineering far more efficient by automating tasks that were traditionally done by humans. Sam Altman, OpenAI’s CEO, recently shared how these AI agents could perform tasks typically handled by engineers with just a few years of experience. For instance, an AI might be able to complete coding tasks that would normally take an engineer a couple of days to finish. This could range from simple programming fixes to more complex, day-to-day software engineering work. However, it’s important to note that these AI agents will not be without limitations—they won’t be creating groundbreaking solutions, and they’ll still require human oversight for now. But as Altman pointed out, this shift represents a major step toward reducing the need for junior engineers, and it raises questions about what this means for the future of these roles.

When I think about how this announcement specifically impacts the Indian IT services sector, it’s hard not to feel a sense of urgency. The Indian IT industry has long been a powerhouse, with companies hiring thousands of engineers annually to support a wide range of IT needs. A significant portion of the workforce in India is composed of junior engineers who write code and manage software systems. These are the very jobs that AI agents are now targeting, and that’s causing a ripple effect in the industry. Indian companies are starting to see a drop in headcount, and while the macroeconomic environment is part of the reason, it’s clear that automation is contributing to this shift as well. The reality is that AI tools like those developed by OpenAI have the potential to completely change how businesses approach hiring and training engineers. This begs the question: if AI can take over so many of the entry-level tasks, what happens to the people who once filled these positions?

It’s impossible to ignore the growing evidence that automation is already making its mark on the industry. Some companies, like Cognizant, have embraced AI tools to improve their development processes. In fact, Cognizant recently revealed that 20% of the code they produce is now written by AI, using tools like Google’s Gemini tool for developers. This is just one example of how automation is becoming a key player in the industry, reducing the demand for new hires and making the traditional hiring model less relevant. As more and more companies adopt these tools, we can expect to see a similar shift across the board—lower-level coding tasks that used to require human engineers will be automated, and businesses will begin to rely more on AI agents to handle these jobs.

This shift toward automation raises an important issue for workers in the tech sector: what happens to all the people who were previously employed to do these jobs? If a significant portion of IT services work can be done by AI agents, does that mean a dramatic decrease in job opportunities for human engineers? The answer isn’t entirely clear, but what we do know is that the nature of engineering work is about to change. According to estimates from HSBC, automation could lead to a 20-30% deflation in the cost of IT services work, which in turn could result in a 4-5% reduction in overall IT services spending over the next three to four years. This suggests that companies may start shifting their focus away from hiring new engineers, especially for roles that can be automated by AI.

The shift to automation isn’t just a problem for junior engineers—it’s a question that will affect workers at every level. As companies continue to integrate AI into their operations, the demand for workers with specific skills will change. There will still be a need for high-level engineers and technical experts who can oversee AI systems and ensure they’re functioning properly. However, the focus will shift toward people who can think critically, solve complex problems, and manage the creative aspects of software development that AI simply cannot handle. In essence, the role of an engineer may evolve from doing repetitive coding work to overseeing and collaborating with AI to ensure projects run smoothly. This opens up new possibilities for engineers, but also demands new skills and a different approach to their training.

This is where the need for a major shift in education comes into play. If AI agents are going to handle much of the basic coding work in the future, the next generation of engineers will need to be equipped with skills that go beyond basic programming. They will need to be trained not just to write code but to work alongside AI systems, to collaborate with machines, and to apply their creativity and problem-solving abilities in new ways. The focus will shift to higher-order thinking—skills that allow engineers to guide AI, make critical decisions, and oversee projects that require a human touch. The reality is that the STEM education system, particularly in countries like India, needs to adapt to this new technological landscape. We need to reimagine how we teach engineering, ensuring that students are prepared for the future, not just the present.

The current STEM curriculum doesn’t always account for the growing importance of AI in the workplace. While students are still being taught to write code and focus on technical skills, the reality is that the future of work will require far more than just technical expertise. Students will need to be trained in higher-level concepts that prepare them to work with AI, including understanding how AI works, how to manage AI-driven projects, and how to adapt to rapidly evolving technologies. By focusing on skills that complement AI, we can ensure that the workforce of the future will be equipped to take on more complex and rewarding roles. At the same time, we must embrace the idea that AI will not replace engineers, but rather augment their work, allowing them to focus on tasks that require human ingenuity.

This brings us to a critical point: the future of work is not about humans versus machines—it’s about humans and machines working together. While it’s natural to feel apprehensive about the potential impact of AI on jobs, I believe the reality is that AI will open up new opportunities for innovation and creativity in ways we haven’t yet imagined. The key will be adapting quickly and thoughtfully, preparing our workforce for a world where AI and humans collaborate, rather than compete.

As the AI landscape continues to evolve, we need to embrace these changes and help shape the future of work. For companies, that means investing in technology that allows workers to be more efficient and productive. For workers, it means embracing new ways of thinking and preparing for roles that require not only technical expertise but also creativity, problem-solving, and leadership. And for educational institutions, it means rethinking how we teach the next generation of engineers, focusing on skills that complement and enhance AI technologies.

In the end, the rise of AI in engineering is not something to fear but something to embrace. It’s an opportunity to rethink how we work, how we collaborate, and how we innovate. The sooner we adapt to this new reality, the better positioned we will be to succeed in an increasingly AI-driven world.

We all need to start thinking ahead—about the skills we’ll need, the challenges we’ll face, and the ways in which we can continue to drive innovation, even in the face of rapid technological change. The future is not just about technology; it’s about how we use that technology to improve the human experience and to create new possibilities for work, learning, and growth. This is an exciting time, and while the road ahead might be uncertain, it’s full of potential for those willing to adapt.

Let’s keep the conversation going, keep experimenting, and, most importantly—stay curious.

That’s it! Keep innovating and stay inspired! If you think your colleagues and friends would find this content valuable, we’d love it if you shared our newsletter with them!

PROMO CONTENT

Can email newsletters make money?

With the world becoming increasingly digital, this question will be on the minds of millions of people looking for new income streams in 2025.

The answer is—Absolutely!

That’s it for this episode!

Thank you for taking the time to read today’s email! Your support allows me to send out this newsletter for free every day. 

 What do you think for today’s episode? Please provide your feedback in the poll below.

Share the newsletter with your friends and colleagues if you find it valuable.

Disclaimer: The "Tiny Big Spark" newsletter is for informational and educational purposes only, not a substitute for professional advice, including financial, legal, medical, or technical. We strive for accuracy but make no guarantees about the completeness or reliability of the information provided. Any reliance on this information is at your own risk. The views expressed are those of the authors and do not reflect any organization's official position. This newsletter may link to external sites we don't control; we do not endorse their content. We are not liable for any losses or damages from using this information.