LLM has been hollowing out the mid and lower end of engineering. But has not eroded highest end. Otherwise all the LLM companies wouldn’t pay for talent, they’d just use their own LLM.
In my experience the limiting factor is doing the right choices. I've got a costumer with the usual backlog of features. There are some very important issues in the backlog that stay in the backlog and are never picked for a sprint. We're doing small bug fixes, but the big ones. We're doing new features that are in part useless because of the outstanding bugs that prevent customers from fully using them. AI can make us code faster but nobody is using it to sort issues for importance.