What will happen to software designers’ jobs as their work is increasingly automated

I think it's interesting that you understand design systems to be something that automates a designers job. I've felt lately that a design system is something that helps a design team focus on more important things. If we have a system that makes the UI component of our job faster, and more efficient, we can focus on a lot more than just skinning new UI.

Imagine smaller teams being able to focus on truly testing usability, prototyping crazy new ideas and creating new functionality that they just didn't have time to conceive in the past because they were too busy pushing pixels.

I think Design Systems will help designers have much more impact on business, and when that happens, designers could become even more of an asset.

EDIT:

It’s true that most designers are creative problem solvers whose skills extend beyond their ability to use a tool like Figma or Photoshop.

Come on... No one uses Photoshop anymore. Say it with me... "Sketch"