AI was meant to replace software developers. It's creating more instead.

One of the biggest fears astir AI was that it would kill tech jobs and shrink the package industry.

The logic seemed straightforward. If AI made developers overmuch much productive, tech companies would request less of them. That would mean less software subscriptions, known arsenic "seats," because each worker typically has their ain account.

Investors besides worried that AI coding tools would alteration companies to build much of their ain package alternatively than bargain it from established vendors.

The software elephantine Atlassian sat correct successful the measurement of these buzzsaws because it sells devices that thief teams shape work, collaborate, and build software. That drove the banal down much than 50% successful the first fewer months of 2026.

Now, the image looks very different.

Atlassian shares jumped 35% connected Friday aft the institution reported surging revenue, helped by maturation successful seats for its main Jira and Confluence products.

That suggests that AI is creating much roles for package developers, alternatively than sidesplitting tech jobs.

"There's going to beryllium much developers successful the world successful 5 years' clip than location are today," Atlassian CEO and cofounder Mike Cannon-Brookes said aft the results. "Developer hiring will proceed to grow."

"The costs of building exertion is going down. The magnitude of exertion we're going to build is going to spell up," he added. "Those are the signals we spot successful our customers. The expertise to turn that is huge."

This reminds maine of thing Nvidia CEO Jensen Huang said a fewer years ago. He predicted AI would make penning package overmuch easier, opening this accomplishment to galore much people.

"The programming connection is human; everybody successful the world is now a programmer," he said.

Atlassian is seeing this hap crossed its firm customers. The institution said spot maturation wasn't conscionable coming from package developers. Roughly two-thirds of Jira and Confluence users are now successful roles specified arsenic quality resources, finance, and legal.

"The number of group building exertion that we don't needfully telephone developers is besides growing," Cannon-Brookes said.

In different words, AI whitethorn not beryllium replacing developers. Instead, it appears to beryllium expanding who gets to build software.

If that's right, the long-feared illness successful package jobs and subscriptions whitethorn ne'er arrive. Instead, AI could create a overmuch larger excavation of group building technology, and an moreover bigger marketplace for companies for illustration Atlassian.

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