If anything, the main thing LLMs are showing is that the humans need to be pushed to up their game. And that desire to be better, I think, will yield an increase in supply of high-quality labour than what exists today. Ive personally witnessed so many 'so-so' people within firms who dont bring anything new to the table and focus on rent seeking expenditures (optics) who frankly deserve to be replaced by a machine.

E.g. I read all the time about gains from SWEs. But nobody questions how good of a SWE they even are. What proportion of SWEs can be deemed high quality?