Yes, I used to be skeptical about the hype, but now I'm somewhat concerned. I don't think they will replace engineers but they do increase their productivity. I'm not able to quantify by how much though. In my case, maybe it increases my productivity by 5-10%, saving me a few hours of work each week. Very rough estimate.

Does it mean that we'll need less engineers to perform the same amount of work? or we'll produce better products? In my company, there's no shortage of things to do, so I don't think we'll hire less people if suddenly engineers are a bit more productive. But who knows how it'll impact the industry as a whole.