This will only be resolved out there in the real world. If AI turns a bad developer, or even a non-developer, into somebody that can replace a good developer, the workplace will transform extremely quickly.
So I'll wait for the world to prove me wrong but my expectation, and observation so far, is that AI multiplies the "productivity" of the worst sort of developer: the ones that think they are factory workers who produce a product called "code". I expect that to increase, not decrease, the value of the best sort of developer: the ones who spend the week thinking, then on Friday write 100 lines of code, delete 2000 and leave a system that solves more problems than it did the week before.
It is 100% a function of what you are trying to build, what language and libraries you are building it in, and how sensitive that thing is to factors like performance and getting the architecture just right. I've experienced building functioning systems with hardly any intervention, and repeatedly failing to get code that even compiles after over an hour of effort. There exists small, but popular, subset of programming tasks where gen AI excels, and a massive tail of tasks where it is much less useful.
It’s interesting some folks can use them to build functioning systems and others can’t get a PR out of them.