I had a chat today with a friend about this. I think my working thesis is that AI is bad news for outsourcing/offshoring.

What was it good for? Well, often it was prompting a person in a low-cost location what code to write. He would pick it up in his timezone and implement it overnight, and present findings/questions as a response.

The problem is, coding has made implementation super cheap. It is now so cheap you have to compare it to the cost of dealing with someone in another timezone, who does not have the same cultural context on the problem. They also can't ask you clarifying questions while you're asleep. AI wins against the offshore guy, on both money and context.

Who does it help? Amazingly, the experienced onshore dev who thought he was going to be unemployed past 40. This person is now able to implement several things concurrently, has experience in making technical decisions, and has local cultural context.