A lot of it is just fake work. There was already a bunch of fake work before AI. Now there's even more fake work. Organizations tend to produce more and more of it.

The general impression I get is that the real bottleneck isn't needing to write code faster, it's understanding what the technical problems are and having the freedom to do what is needed (which is sometimes risky I guess).

It doesn't seem like we're headed in this direction (from my n=1 perspective on the ground). It seems like we've just dialed up the fake work and fear culture. People are too busy and afraid to actually look around and figure out what the fuck is going on. There's just more bullshit fake work and it just keeps coming. And it's getting done faster, sure, but it was never tied to any specific economic outcome anyway and solely exists to waste people's time and empire build.

And there's not really an incentive to fix the problem either. In corporate cultures which try to be "lean" and are firing people all the time, management is incentivized to intentionally overstaff teams and keep people pushed away from critical initiatives so that they have sacrificial lambs for the next layoff. In cultures which have more fat, there's no real downward pressure anyway.

You can't force organizations to be efficient without cutting out the middlemen and taking the time to figure out what the fuck is actually happening. At large companies, this is already unsustainable anyway. Maybe this is what McKinsey used to do (and what AI is now going to help with): getting an omniscient view of what's happening organizationally. This would require leadership to do stuff that actually makes sense, which is why it won't happen