We'll reap the productivity benefits from this new tool, create more work for ourselves, output will stabilize at a new level and salaries will stagnate again, as it always happens.
It took under a decade to get AI to this stage - where it can build small scripts and tiny services entirely on its own. I see no fundamental limitations that would prevent further improvements. I see no reason why it would stop at human level of performance either.
There is zero reason to think AI is some exception that will continue to exponentially improve without limit. We already seem to be at the point of diminishing returns. Sinking absurd amounts of money and resources to train models that show incremental improvements.
To get this far they have had to spend hundreds of billions and have used up the majority of the data they have access to. We are at the point of trying to train AI on generated data and hoping that it doesn’t just cause the entire thing degrade.