AI Revolution and Lessons From the Luddites: Does A Cloudy Future Loom For Coders?

The Fast-Moving Beast

The progress in AI-driven coding has been nothing short of incredible. OpenAI’s O3 model has already achieved an ELO rating in competitive programming, which currently ranks it among the top 175 human coders in the world. Apparently, according to Emad Mostaque, former CEO of Stability AI, AI already outperforms outsourced human programmers in markets like India, and Sam Altman, CEO of OpenAI, has predicted that AI will be the “world’s best programmer” by the end of this year. That’s right, numero uno. It will write code faster, more accurately, and at a fraction of the $250K and-the-rest remuneration commanded by top Silicon Valley engineers….. and doesn’t even take a coffee break! Non-coders will be able to input simple instructions in plain English and receive fully functional code in seconds. Wow!

So, if AI can code better, faster, and cheaper, why would tech companies continue to employ human developers at scale?

Think about that for a moment.

What happens next?

A Tsunami of AI-Driven Job Cuts

The impact is already being felt. The tech industry, once a bastion of job security, is beginning to see mass layoffs. Meta, the owner of Facebook, Instagram, WhatsApp etc.,   recently cut 5% of its workforce, about 3,600 employees, under the guise of removing “underperforming” staff.

The subtext is clear: AI is changing the game.

The significant concern is about not just the layoffs but what is replacing these workers -machine learning engineers and AI-driven automation – and where this is heading. With AI-driven programming evolving at breakneck speed and capable of generating and refining code at unprecedented speeds, the question is no longer if human coders will be replaced, but when and how quickly.

This is a fast-moving beast.

This looming transformation echoes a historical parallel as it bears an eerie resemblance to the mechanisation of textile production during the first Industrial Revolution and the related Luddite movement of the early 19th century. Much like the textile workers of industrial Britain who saw machines and unskilled labour replace their skilled labour, today’s coders face the unsettling reality that AI may render many of their skills obsolete.

The Luddite Movement: A Historical Warning

In the early 19th century, Britain’s textile industry underwent radical changes. Before industrialisation, skilled labourers such as weavers, croppers, and stocking-makers enjoyed control over their work, taking advantage of flexible schedules and decent wages. However, new machinery such as the wide frame and gig mill allowed manufacturers to produce goods faster, cheaper, and with fewer workers.

As a result, wages plummeted, and thousands of skilled workers found themselves unemployed. This led to the rise of the Luddites, disgruntled artisans who took to smashing industrial machinery in a desperate attempt to halt technological displacement and the way it was being used to drive down wages and exploit workers.

The Luddite revolt escalated quickly. Armed groups destroyed machinery, set factories on fire, and even assassinated factory owners. The British government responded with brute force, deploying thousands of troops to crush the movement. In 1812, the Frame-Breaking Act was passed, making machine-breaking punishable by death. Dozens of Luddites were publicly executed or exiled to Australia, and within a few years, the movement was effectively suppressed. However, the concerns about economic inequality and worker displacement remained relevant, foreshadowing future labour struggles.

Is This a Modern Luddite Crisis?

While coders today may be unlikely to take up sledgehammers against AI servers (although social instability cannot be discounted), the economic anxiety they face is similar to that of the Luddites. As AI-driven coding platforms become more advanced, the need for human programmers, particularly those performing routine or entry-level tasks, will decline dramatically.

The potential for mass layoffs among coders raises critical questions about economic fairness and job security. Unlike during the Luddite era, where workers were physically prevented from operating machines, today’s programmers are actually training the very AI that will replace them.

The irony is not lost on many in the industry.

Lessons from History: What Can We Do?

The Luddite movement eventually failed, not because their concerns were unfounded, but because they lacked the political and economic leverage to demand fairer terms of technological transition. Enter the trade unions, offering protection for pay and conditions.

The violence and pain occurred because the government didn’t intervene on behalf of the workers and reacted too slowly. Today, policymakers and tech leaders have an opportunity to do things differently. What can be done?

• Upskilling and Reskilling Programmers: Perhaps automation won’t necessarily be catastrophic. Erik Brynjolfsson, Senior Fellow at the Stanford Institute for Human-Centered AI (HAI), suggests that while AI may replace some coding jobs, it will also create new opportunities – just as industrialisation eventually led to office jobs and administrative roles. However, the word “eventually” is doing a lot of heavy lifting here – the transition period could be turbulent, with many programmers struggling to reskill before new opportunities arise. Governments and tech companies should invest in retraining initiatives, helping displaced coders transition into roles that AI cannot easily replicate, such as software architecture, cybersecurity, and AI ethics.

• Careers’ Advisers and Parents Must Adapt Fast: Careers advice must keep pace with reality. Outdated guidance isn’t just unhelpful—it’s actively dangerous. Many careers’ advisers and parents are still pushing students toward coding, believing it to be a secure and high-paying profession. However, failing to acknowledge the seismic shifts in AI risks setting young people on a path toward redundancy before they even start their careers. Schools, universities, and advisory bodies must urgently update their guidance, focusing on skills that will remain valuable in an AI-dominated world.
• Government Regulation and Corporate Responsibility: Policymakers should introduce regulations ensuring that AI augments human labour rather than outright replacing it. Additionally, governments should force tech companies to share the inequitable productivity gains from AI with their workforce and wider society, preventing AI from becoming solely a cost-cutting tool at the expense of human employment.

Tax and Regulations

The broader impact from AI is expected to spread beyond programmers and reach all parts of the economy with the Institute for Public Policy Research estimating that the fallout could be up to 8 million jobs wiped out in the UK alone. If automation significantly disrupts employment to that extent, a mooted Universal Basic Income could help cushion the economic blow for those displaced. This could be partly funded by tax on supertech businesses and the wealthy individuals profiting from the innovation.

The pace of AI advancement means waiting is not an option. Solutions must be developed and implemented immediately.

The Future of Coding in an AI-Driven World

Despite the grim outlook, not all hope is lost for human programmers. AI may be powerful, but it still requires oversight, creativity, and problem-solving abilities that machines struggle to emulate. The coders who thrive in this new era will likely be those who specialise in areas AI cannot yet master, such as designing AI systems, developing ethical guidelines, and creating novel algorithms.

However, the historical parallels remain striking. Just as textile workers in 1811 watched their livelihoods vanish at the hands of industrial machinery, today’s coders are witnessing a similar shift with AI. Whether history repeats itself as tragedy or transforms into an opportunity for innovation will depend on how society chooses to navigate this technological upheaval.

If the Luddite episode taught us anything, it’s that unchecked technological progress can have severe human costs. The Luddites smashed looms; if we don’t act fast, AI will smash careers and the social upheaval that could result, whilst unpredictable, could well be devastating for many communities and individuals. It’s up to governments and businesses themselves to ensure that this current industrial revolution benefits everyone, not just the corporations wielding AI’s immense power.

We need to act fast or risk being coded out of existence.

By Neil Wolstenholme, Kloodle Chairman