"I don't see a lot of societal level problems other than the labor market" - that one problem is large enough to result in societal collapse.

How do you not see other societal level problems. This technology destroys human communication. It undermines the thing the internet came into existence for, and turns it into a liability. It grants intelligent analysis to a sprawling surveillance network. It makes people mentally ill. It destroys confidence and hope in technological progress. Who even cares about cancer at that point? I would rather die of cancer than live in a fake, ugly, artless world full of fake, stupid, and crazy people under constant surveillance by an AI.