There are some caveats here. The cost of AI labor needs to be below that of the human minimum. Given there is no effective limit to how much AI labor you can create, the likely result is the cost of capital will fall to near zero making AI labor near free. No human will be able to compete against this except in providing personal services to the owners of capital in fluff jobs.
The more interesting thing is that with the cost of capital and labour at near zero we should get massive deflation to the point that it will be very cheap to provide all people with a very high basic income that will make the need for employment unnecessary. This would be a great world to live in, but it would have a profound effect on the society unlike anything since the rise of agriculture.