Understanding IT sector

My perspective on the discussion of AI/ChatGPT/Robotic Process Automation is below:

1. Robotic Process Automation (RPA) : This is used mainly by Non IT sector like Banks, MF industry, Retail industry and any industry for that matter which wants to automate some of their manual business processes and automate to some extent. Generally 50% to 80% automation of the Business process is possible. RPA Bots mimic human actions and can enter data, and do lot of manual activities automatically. It is a Robotic Process which runs on individual machines or on multiple machines.
   Though this reduces man power used by those companies, it can create Jobs in IT sector as we have seen in past 5-6 years. This is classified as Digital revenues by many IT companies. It requires RPA developers, Designers and Testers as well.
   I will classify Chat Bots also in this category. It certainly reduces human jobs and increase efficiency and margins.

2. AI/ML/ChatGPT: This is used by IT as well as other industries. If used properly, it can automate certain tasks done by software developers. There are intelligent tools available today as well which can write software code to certain extent and also automate testing. This has already reduced some % of IT jobs in past decade. You can reduce your team size by some percentage, and still get the work done.
   ChatGPT could be more smart and intelligent, so it may have some impact on writing software, analyzing complex requirements and suggest suitable algorithm/design approach. I am not sure whether such intelligence is possible or not. But it could be possible and achievable in near term or long term. It may create some jobs where the software developer/designer may need to input problems to it and get the solutions from it or use some API(s).
   At the same time, it may reduce number of software designers required for understanding complex problems, suggest suitable design or algorithm or an approach. It can also reduce number of software developers required for IT projects.
   The fact is that, any Intelligent Automation if done properly reduces dependency on humans to some extent and it can happen in this case as well.

As far as impact on Sales and Profits of IT companies, I do not think, that it will reduce. In fact, it may create more efficient teams, with substantial work done through Automation, and thus might help to increase operating margins to some extent. In the long term, margins will stabilize to some level.

I may be wrong in my analysis, but this based on my long term experience in IT sector for about 25 years.

Disc : I am an ex-IT professional and trying to understand new technologies and Read about it as much as possible.