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 creates an uncomfortable tension. We celebrate automation as progress, yet watch as it erodes the very expertise that created it.

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 tools are impressive. They handle routine work faster than any human could. But they raise questions about what happens when the routine becomes automated, and the complex becomes routine.

What do we do when the skills we’ve spent years developing become as common as knowing how to use Squarespace?

Patterns Across Industries

This isn’t unique to software. Look at photography: digital cameras automated film development, then smartphones automated cameras themselves. Professional photographers who once charged hundreds for portraits now compete with anyone who owns an iPhone.

Or consider graphic design: tools like Canva have automated layout and typography work that once required years of training.

The pattern is consistent. Automation democratizes access, which is good for consumers but challenging for those whose livelihoods depend on specialized knowledge.

The Human Element

What’s interesting is how industries respond. Some segments disappear entirely. Others evolve, finding value in areas that resist automation.

In software, we’re seeing both. Routine coding tasks are increasingly automated. But complex system design, understanding business context, and navigating organizational dynamics remain stubbornly human endeavors.

The question becomes: where do you find satisfaction when the tools you use are also your potential competitors?

The Uncomfortable Truth

We celebrate technological progress, and rightly so. Automation has created incredible value and opened doors that were previously closed.

But it also forces us to confront the reality that in a competitive market, full automation leads to commoditization. The very tools we build to create value can become the instruments of our own displacement.

This paradox sits at the heart of software engineering. We automate to create efficiency, but that same efficiency reduces the economic value of the skills that created it.

It’s not about resisting automation—it’s about understanding its full impact on our work and our industry.