I see this argument way too often. How many electricians and plumbers does the world really need? And if the market becomes over saturated, how much will those jobs pay? How often will you actually have a job to do?
AI makes everything else so cheap, that by just working for a small bit of time, you can afford all the necessities?
People worked more today because they desired more. In fact, the desire outstripped their ability to increase their wages!
That sadly doesn't apply to housing or food, at least in the places I've lived. E.g. houses in the place I was born are now 5x the price, once you factor in inflation. Food and vehicles are 2x. Higher education went from "free" to $30K.
The really important things are far more expensive now, across the three countries I've spent decades in. Maybe the overall situation is different for the US of A.