The Automation Paradox: How Software Engineers Create Their Own Commodities.

The Irony of Automation in Software Engineering

Software engineers create value by automating processes. We build systems that generate value tirelessly—like robotic hamsters in virtual wheels. But here’s the paradox: when a process becomes fully automated, it often transforms from a competitive advantage into a commodity.

This isn’t just theoretical. It’s happening across our industry, and understanding it can help you navigate your career more effectively.

When Automation Meets Commoditization

Take web development in the early 2000s. Custom websites were valuable because they required specialized knowledge of HTML, CSS, and SEO. Clients needed experts, and developers could charge premium rates for this expertise.

Then came the automation wave. We built frameworks, CMS platforms, and drag-and-drop tools to make web development faster and more efficient. We wanted to scale our impact and reduce repetitive work.

What happened next was exactly what we wanted—yet it destroyed much of the value we had created.

Squarespace and the Commoditization Effect

Squarespace automated web development so effectively that anyone could create a professional-looking website in minutes. What was once a specialized skill became accessible to anyone with a credit card.

This created tremendous value for end users and entrepreneurs. But for developers who had built their careers on custom web development, it was devastating. The market flooded with low-cost alternatives, and pricing became dictated by supply and demand rather than the value generated.

The same pattern plays out across our industry. When enough competitors can automate a process, the economics shift dramatically.

The AI Automation Wave

Today, we’re seeing this same dynamic with AI and large language models. Companies are racing to automate complex tasks—code generation, testing, deployment, even architecture decisions.

The question isn’t whether these tools will commoditize certain aspects of software development. They almost certainly will. The question is: how do you position yourself to thrive in this new landscape?

Lessons from the Automation Paradox

1. Focus on What Can’t Be Easily Automated

The most sustainable value comes from work that requires human judgment, context, and complex problem-solving. Look for opportunities where automation enhances human capabilities rather than replacing them entirely.

2. Build Systems That Learn and Adapt

Instead of automating static processes, focus on building systems that can learn from data and adapt to changing conditions. This creates ongoing value that pure automation can’t match.

3. Develop Deep Expertise in Complex Domains

As basic coding becomes more automated, deep expertise in specialized areas—security, performance optimization, distributed systems, domain-specific knowledge—becomes more valuable.

4. Embrace Automation as a Multiplier

Use automation to amplify your impact rather than seeing it as a threat. The developers who thrive are those who leverage tools to tackle bigger, more complex problems.

Moving Forward Strategically

The automation paradox teaches us that commoditization is inevitable in a competitive market. But it also shows us that new opportunities emerge from each wave of automation.

Your competitive advantage lies in understanding this cycle and positioning yourself where human expertise still matters. Focus on the problems that require judgment, creativity, and deep technical understanding—the areas where automation can assist but not replace.

By embracing this paradox rather than fighting it, you can build a career that not only survives automation waves but actually benefits from them.

Key Takeaways

• Automation creates value but can commoditize the very skills that created it
• Focus on complex problem-solving and human judgment over routine tasks
• Use automation as a multiplier for your expertise, not a replacement for it
• Continuously develop skills in areas that require deep context and adaptation
• Position yourself for the opportunities that emerge from each automation wave

The goal isn’t to resist automation—it’s to understand how to work with it to create even greater value.