If all jobs were taken by AI in a short time span, the companies owning and operating those AIs would go out of business as no one would be able to afford the products made by the AIs. This is an unlikely scenario. Not all things will be made/run by AIs in a short time. It is far more likely that specific jobs in specific industries will be taken by AI, and AI will slowly take the labor market. This will drive down prices on products, services, and labor. Once human labor's price is low, and once many product prices are low, the overall employment level of humans will rise. The effect of AI then is actually just deflationary pressure on all prices over time.
The really scary part is what happens to all of the newly unemployed people between the falling prices part and the rising employment part. My guess is, governments and markets won't move quickly enough and unrest is what happens.
The really scary part is what happens to all of the newly unemployed people between the falling prices part and the rising employment part. My guess is, governments and markets won't move quickly enough and unrest is what happens.