Automation is the exact opposite of tying knowledge to people. It's extracting knowledge from people and transferring it to a machine that can continue to produce the goods.
Yes, AI can lead to problems and some of these problems will be related to gaps in knowledge that was thought to be obsolete when it really wasn't. But that's a totally different problem on a totally different scale from what happened with defense production after the end of the cold war.
Nobody is shutting down or reducing software production. On the contrary, we're going to be making a lot more of it.