That’s not basic economics. Basic economics says that salaries are determined by the demand for labor vs the supply of labor. With more efficiency, each worker does more labor, so you need fewer people to accomplish the same thing. So unless the demand for their product increases around the same rate as productivity increases, companies will employ fewer people. Since the market for products is not infinite, you only need as much labor as you require to meet the demand for your product.

Companies that are doing better than ever are laying people off by the shipload, not giving people raises for a job well done.

Well, that depends on whether the technology requires expertise that is rare and/or hard to acquire.

I'd say that using AI tools effectively to create software systems is in that class currently, but it isn't necessarily always going to be the case.

Nah, most of it just gets returned to capital holders.