Let's say LLMs add 50 "skill points" to your output. Developer A is at 60 skill points in terms of coding ability, developer B is at 40. The differential between them looks large. Now add LLMs. Developer A is at 110 skill points, developer B is at 90. Same difference, but now it doesn't look as large.

The (perceived, alleged) augmentation by LLMs makes individual differences in developer skill seem less important. From the business's perspective, you are not getting much less by hiring a less skilled developer vs. hiring a more skilled one, even if both of them would be using LLMs on the job.

Obviously, real life is more complicated than this, but that's a rough idea of what the CEO and the shareholders are grappling with from a talent acquisition standpoint.