The threat with AI for a lot of people is that what they do right now becomes less valuable. And people don't like change and feel threatened by it. Generally there are two solutions to that problem:
1) do something else that is more valuable or more worthy of your time.
2) figure out a way to scale what you do. For example by leveraging AI.
For many people it might be a combination of the two. And for some people it will indeed mean that they need to figure out something else to do.
But we'll still need to have an economy that is based on people earning some kind of income and then spending that income. The whole system grinds to a halt without that. If AI eliminates all the jobs, nobody would earn anything and be unable to spend. So, that's unlikely to happen. Economies are self regulating in the sense that people optimize for value.
In the end AIs are just tools that people use to create value for each other. If an AI can do everything by itself at a very low cost that just means that what it does has low value and is not something that people will spend a lot of money on. Meaning that other things will emerge that they will spend their money on that are more valuable. Those things are probably going to involve human activity that is scarce in some way.