Concerns surrounding artificial intelligence (AI) have long revolved around the potential threat it poses to tech jobs and the overall software sector. The reasoning was logical: If AI significantly boosts developer productivity, companies might require fewer developers, leading to a reduction in software subscriptions—commonly referred to as "seats" since each employee utilizes their own account.
Investors feared that with AI coding tools at their disposal, businesses would start creating more in-house software instead of purchasing it from established providers. Atlassian, a leading player in the software industry providing collaboration and project management tools, found itself at the center of these concerns, witnessing a dramatic drop in stock prices—over 50%—early in 2026.
However, recent developments indicate a shift in this narrative.
Atlassian stock saw a remarkable 35% spike on a recent Friday after the company announced a notable increase in revenue, attributed to an uptick in users of its flagship products, Jira and Confluence. This uptick suggests that AI is fostering an expansion of roles for software developers rather than diminishing employment opportunities in the tech field.
"Within the next five years, we will see more developers in the market than we have today," stated Mike Cannon-Brookes, Atlassian's CEO and co-founder, following the financial results. He emphasized that developer recruitment is set to continue on an upward trajectory.
"The expenses associated with technology development are decreasing, while the volume of technological innovations will increase," he remarked, highlighting significant trends observed among their clients that indicate vast growth potential.
These sentiments echo comments made by Jensen Huang, CEO of Nvidia, a few years back. He envisioned AI simplifying the software development process, thereby making programming accessible to a broader audience. "The programming language is human; essentially, everyone in the world has become a programmer," he noted.
Atlassian's experience reflects this vision as well. The firm reported that its increase in users isn't limited to software developers; instead, approximately two-thirds of Jira and Confluence users now include professionals from sectors like human resources, finance, and legal.
Cannon-Brookes pointed out that the growth in individuals creating technology stretches beyond traditional developers, indicating a diversification in who is involved in software creation.
This suggests that rather than eliminating developers, AI might actually be broadening the base of individuals capable of developing software. If this trend holds true, the feared downturn in software jobs and subscriptions may not materialize. Instead, AI could usher in a more extensive community of technology creators and expand markets for companies like Atlassian.
