Generative AI tools are increasingly being integrated into professional workflows and business applications. This raises questions of how such tools will affect the productivity of workers and labor demand. This paper presents results of early experimental research on these questions for software developers and discusses the results in the context of the broader automation literature. The technology industry and software development in particular were early adopters of these tools, and as such may offer a preview of impacts across the economy. We also highlight several policy implications, including the need for education and upskilling as well as ways to encourage AI development to complement and not substitute for labor. We intend this paper to be illustrative of expected changes to work and policy implications arising from the proliferation of generative AI tools.