AI now writes 25% of code at Amazon, Microsoft, tech jobs massively affected

As the tech industry faces another wave of mass layoffs and hiring freezes in 2025, a growing chorus of voices is blaming the very technology at the heart of Silicon Valley’s next revolution — artificial intelligence. New findings reveal that AI is now generating nearly 25% of the code written at major tech companies like Microsoft, Amazon, and Alphabet, reshaping the nature of software development and raising alarms over the future of entry-level tech jobs.

A recent Pew Research Center survey found that nearly half of Americans (48%) believe software engineers will be among the professions most disrupted by AI — more than teachers, accountants, or journalists. This fear is playing out in real time. While employment for 22-to-27-year-olds in most sectors has ticked upward, computer science and math roles in that age group have fallen by 8%, according to The Atlantic.

At Microsoft and Google’s parent company Alphabet, executives have confirmed that AI tools are now integral to code development. Amazon CEO Andy Jassy went a step further, warning employees that AI will reduce the company’s corporate workforce in the years ahead. In an internal message, he urged teams to get “scrappier,” and said AI will create new roles — but fewer of them.

“We will need fewer people doing some of the jobs that are being done today,” Jassy noted, pointing to significant productivity gains.

The growing reliance on AI has also left tech graduates in a bind. Job opportunities are shrinking, and competition is fiercer than ever. Chris Gropp, an AI specialist quoted by The Atlantic, shared his own struggles landing a role in today’s AI-heavy market, despite being in the field that’s shaping the future.

The shift is also starting to affect computer science education. Enrollment in CS programs has historically tracked with job market trends, rising during tech booms and dipping during downturns. While some universities like the University of Chicago have yet to report drops, anxiety is growing. The once “safe bet” career in coding is now being re-evaluated by students and educators alike.

Still, some experts say the transformation isn’t all bleak. Sam Madden, a professor at MIT, told The Atlantic that generative AI might actually increase demand for skilled engineers — especially those who know how to harness AI effectively.

“AI is making people more efficient,” said Princeton’s Szymon Rusinkiewicz, “and companies may feel they can do more with less — or with fewer hires.”

Read More: Today in AI: LinkedIn AI tool demand | AI chatbots resort to blackmail | Perplexity launches AI browser