Palo Alto Networks CEO Nikesh Arora Thinks AI Will Create More Engineering Work, Not Less

Contrary to popular opinions, instead of replacing engineers, AI may actually increase demand for technical talent, Arora suggests.

May 20, 2026

by David Adubiina

As conversations around AI continue to fuel fears of job losses across the tech industry, many believe that more powerful AI tools will eventually mean fewer engineers are needed. But Nikesh Arora, the CEO of Palo Alto Networks, thinks that assumption misses the bigger picture.

Speaking during a recent episode of Hard Fork, Arora pushed back against the idea that higher AI-driven productivity automatically leads to smaller teams. Instead, he argues that increased productivity can just as easily expand what companies choose to build, rather than reduce headcount.

Here’s a breakdown of what he said about AI replacing engineers.

/1. AI Could Increase Demand for Engineers, Not Reduce It

With AI tools becoming more capable with each upgrade, many people assume these developments will result in fewer workers. However, Arora thinks it is a “fallacy” that AI productivity gains automatically mean companies need fewer people.

“No, I need more,” he said, adding that, “The fallacy is that organizations are going to get 30, 40, 50, 60% more productive from a development perspective and a testing perspective, so we need less people.”