The Impact of AI on the Competencies of Employees in Companies Engaged in Software Development in the IT Sector

Abstract

The rapid proliferation of artificial intelligence technologies, particularly generative AI and large language models, is fundamentally reshaping the landscape of software development. This paper aims to examine the multifaceted impact of AI on employee competencies within software companies, drawing upon recent empirical research, industry reports, and practitioner insights from a decade of IT management experience. The analysis reveals a critical paradox: while AI accelerates code generation and automates routine programming tasks, it simultaneously elevates the importance of human competencies that machines cannot replicate. The findings suggest that the future software engineer will transition from being primarily a code writer to becoming a systems architect, quality assessor, and ethical guardian. Particularly significant is what this paper terms the “junior paradox” — the observation that entry-level positions face the greatest disruption, while experienced professionals who possess deep domain knowledge, architectural thinking, and the ability to evaluate AI outputs become increasingly valuable. The paper concludes with recommendations for competency development frameworks that balance technical AI literacy with the cultivation of uniquely human capabilities such as critical thinking, ethical reasoning, and cross-functional collaboration.