Manual labor would still be there. Hardware is way harder than software, AGI seems easier to realize than mass worldwide automation of minute tasks that currently require human hands.
AGI would force back knowledge workers to factories.
Fortunately no government or CEO is that cynical.
Individual people will decide what they want to build, with whatever tools they have. If AI tools become powerful enough that one-person companies can build serious products, I bet there will be thousands of those companies taking a swing at the “next big thing” like humanoid robots. It’s a matter of time those problems all get solved.
I'd like to believe personal freedoms are preserved in a world with AGI and that a good part of the population will benefit from it, but recent history has been about concentrating power in the hands of the few, and the few getting AGI will free them from having to play nice with knowledge workers.
Though I guess maybe at some points robots might be cheaper than humans without worker rights, which would warrant investment even when thinking cynically.
AI is raising individual capability to a level that once required a full team. I believe it’s fundamentally a democratizing force rather than monopolizing. Everybody will try and get the most value out of AI, nobody holds the power to decide whether to share or not.
Most technology is a magnifier.
I fully expect the distribution to be even more extreme in an ultra-productive AI future, yet nonetheless, the bottom 50% would have their every need met in the same manner that Elon has his. If you ever want anything or have something more ambitious in mind, say, start a company to build something no one’s thought of — you’d just call a robot to do it. And because the robots are themselves developed and maintained by an all-robot company, it costs nobody anything to provide this AGI robot service to everyone.
A Google-like information query would have been unimaginably costly to execute a hundred years ago, and here we are, it’s totally free because running Google is so automated. Rich people don't even get a better Google just because they are willing to pay - everybody gets the best stuff when the best stuff costs 0 anyway.
Not only will AI run the company, it will run the world. Remember: a product/service only costs money because somewhere down the assembly line or in some office, there are human workers who need to feed their family. If AI can help gradually reduce human involvement to 0, with good market competition (AI can help with this too - if AI can be capable CEOs, starting your business will be insanely easy,) and we’ll get near absolute abundance. Then humanity will be basically printing any product & service on demand at 0 cost like how we print money today.
I wouldn’t even worry about unequal distribution of wealth, because with absolute abundance, any piece of the pie is an infinitely large pie. Still think the world isn’t perfect in that future? Just one prompt, and the robot army will do whatever it takes to fix it for you.