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This part actually makes sense. Plenty of software doesn't get written because it's just easier or cheaper to do without it. It's why BPM tools exist. Simplify the coding process and you can solve problems more cheaply.
I also think this will kill BPM tools. Why use BPM tooling when creating a real app is just as easy and more customizable?
I see that requires some more explaining my thinking:
There is only demand and supply.
Previously, we had "high demand" and "limited supply" which is what lead to software dev roles being a very well paid job in silicon valley and some other places.
Now, the promise of AI, making software by itself or increasing productivity, if true, mean that supply increases. That makes software cheaper. Theoretically.
But that's the supply side.
What you're talking about is also a "I have so much supply, I can now afford to do projects and software I could not do before, because my time, budget, etc. was limited." But you already had the idea and the "demand" however low priority, already existed.
What isn't happening, is that some company sits down and suddenly decides that they need more software than they thought they needed. Even the bit that is "replacing real humans" is replacing humans. It's meeting a demand that was already there in a new way.
Using a metaphor / example, we currently, as humanity, manage to feed ourselves. Or let's pretend that we do and nobody is starving. Someone claiming that "the demand for food is going to go up" is talking nonsense. They can say that demand for "cheese" or "meat" or "potatoes" will go up. But not food, because that market is already saturated. Because we're not starving.
Yes, the fact that the demand is there and that the supply gets cheaper will mean that more software will be produced.
But not because of increased demand. AI doesn't create it's own demand.
...at least that's my thought process and why I wrote what I wrote in the original comment.
I see what you're saying. That makes sense. It's an overloaded term.
In economic terms, a price drop would result in an "increase in demand". Because current demand is the amount request "at current price".
And that's why it's always talked about in relation to demand curves. Or how much demand there is at many theoretical.prices.