Smart contracts, and distributed value networks in general are the gateway to this vision. It will be attained once one of these contracts/DAO/AI/whatever becomes self-sustaining.
The DAO will "employ" people in exchange for cryptocurrency, interact with other DAOs, and influence the lives of millions of humans. All the while most individual participants will have no agency against the Dao. We're already used to this with the government-citizen relationship so the transition shouldn't be too painful. The crucial difference will be that, for trust purposes, no human will have absolute control over the DAO.
Some humans will be incentivized to accomplish primary tasks for the DAOs, other humans will keep watch and make sure the reported results are correct (oracles).