AI reduces the need for low skill humans, the skill ceiling is just being raised. Even AGI won't replace most jobs because literally nobody trusts it, and the companies who do will eventually suffer fallout when it fails. It's just like self driving cars, nobody cares when humans crash, but if a self driving car slows down traffic people are burning them down in the streets.
The only people who are fucked are people in third world countries because AI is cheaper than human labor. Inequality is gonna go through the roof and if I lived in a crappy place I would be doing anything I can to get to a first world country.