Due to said industrial revolution, people's quality of life went up a thousandfold, same as in China and other countries now adopting capitalist principles.
And the question with the AI thing is: when you take some chunk of labour out of the employment market entirely (such is the promise of AI across all sectors — hire fewer people), where will the "economic tools" come from. Because you'll trigger demand collapse.
It is a fantasy. And even then, you're talking about a technological change that will ruin a very large number of people's livelihoods and economic security for decades as if it is just something someone will have to fix.
If you look at most of the world, Nigeria or India say you’ll see disgraceful levels of poverty and a small number of people who are ultra wealthy. This is where we are heading in the west if we can’t prevent the rich from inflating and buying all the assets you will own nothing and rent everything from them.