AI is fracturing design into three competing tiers

The design market is no longer a single ladder but three distinct economies: AI-augmented senior designers capturing premium work, mid-market designers losing leverage to generative tools, and a new bottom tier of prompt engineers undercutting traditional entry-level rates. This isn't disruption that levels skill—it's stratification that rewards those who can already command clients while compressing the middle, making the traditional design career pathway (junior→mid→senior) economically unviable for newcomers. The competitive pressure now runs between designers who've productized AI into their workflow and those still selling labor by the hour.