> cutting out menial decisions such as customer service. … Each person in the US hired to do that job would spend their entire paycheck
This person can no longer get a customer service job, but why can’t they get another job? Customer service is hardly career with a huge sunk cost in training and with a non-fungible skill set.
If they go get another job, compared to the base case of economy = customer service, we now have economy = customer service (AI) + new job.
It's easy for anyone to go get a different job as long as the supply of jobs is infinite.
But it is not infinite; eventually, we reach a point where we no longer need additional ditch diggers.