I agree that we could be already making some of these changes, and that the increase in output is definitely gobbling up a bunch of our capacity to do so. That said, we have seen a huge rise in average quality of life over the past 200 years of industrialization. The percentage of people in abject poverty is still much too high, but it's trending downwards [0] and I think AI automation could accelerate that change. I think it may be easier to just scale output so far that it overwhelms human greed — which might sound crazy, but in my opinion is easier than effecting large-scale societal change. We should absolutely be working on societal change as well, though!
[0]https://en.wikipedia.org/wiki/Extreme_poverty#/media/File:Wo...
Work as of now is not a necessity to archieve some outcomes, it's what society is organised around in many aspects.