Lowering costs is obviously a major goal of AI. However, I seriously doubt that the intent of C-suites is to cause skill atrophy. It's just an unfortunate byproduct of replacing humans with computers.
Skill atrophy doesn't lower labor costs in any significant way. Hiring fewer people does.
Skill atrophy doesn't lower labor costs in any significant way. Hiring fewer people does.
Devaluing people lowers it even more. Anything that can be used as a wedge to claim that you're worth less is an advantage to them. Even if your skills aren't atrophied, the fact that they can imply that it's happening will devalue you.
We're entering an era where knowledge is devalued. Groups with sufficient legal protection will be fine, like doctors and lawyers. Software engineers are screwed.