That, or all the jobs go away and then no one has money resulting in a non-functioning economy :).
Lets say you need ditches dug and you need 100 people to do it. Lets say there's only 50 people that want to dig ditches. This is a market favorable to labor. Pay will increase and so will growth of technology.
But the moment the opposite happens the equation dramatically changes. If you have 50 jobs and 51 workers looking for jobs you can now get labor to fight with itself to see who will work for the least money.
>and others will find new jobs and/or start their own businesses.
Right, because there's going to be some magical market where AI isn't doing the same thing (maybe direct contact prostitution for a while?). And yea, lots of little businesses will pop up, and be very quickly ate up and consolidated by large businesses exploiting the interconnectedness of technology everywhere. The future doesn't look like the past in great number of ways because of this.
> then no one has money resulting in a non-functioning economy
This is a very serious risk. Typically this is why authoritarian states fall apart. And in the 'free west' we risk exactly the same with larger corporate consolidation effectively forming a quasi-authoritarian state via lack of competition, rent seeking behaviors, and semi-direct control of the government via lobbying.
* there is no longer a need for a working class
* there is no longer a need for a consumer class
If there is neither a worker class, neither a consumer class, there is no longer a need for an economy
There are just rich people waging war using drones to control access to resources to fullfil their own need. Most people would become utterly irrelevant here.