I don't buy this. What will really happen is that the value of anything AI can produce will drop to near zero, this freeing up money to spend on things only humans can provide. And if you think AI can literally do anything a human can? Well at that point, using that AI should be incredibly illegal, as you're just enslaving a digital person.

Maybe we'll end up with a weird economy where everyone is employed as teachers, caretakers, mentors, life coaches, fitness instructors, physicians, and any other job that people really would prefer to interact with a human while interfacing with.

Would you let your child be taught by an AI teacher? Not worried about what type of sociopathy that might introduce? No, there are many jobs, specifically those around the growth, development, maintenance, and improvement of human lives that will always be preferable to be done by actual humans. Humans can do the human work, and we can slough the drudgery off to the machines.