It may be a bet that AI will reduce the need for developers. Even if it can only write boilerplate, boilerplate still has to be written and is time consuming, so if it were to remove 20% of time that needs to be sunk into a project, the work of 5 people can now be done by 4 (less if you account for the reduced coordination overhead).

Whether these savings actually play out and whether management has accurate expectations and metrics remains to be seen, given messaging that makes it sound like AI saves huge percentages of time, when it at best saves huge percentages of something that's actually only a small percentage of day to day work.