It is a paradox because there is an apparent contradiction in the fact that higher efficiency leads to higher consumption. By definition the opposite should be true.
I don't share that intuition. If I earn more money, I won't necessarily save more. I'll buy better food, better clothes, better everything and live a materially more prosperous life. My savings rate may even go down. Or up. It depends on the specifics. When a tech gets more efficient, it causes people to do more. To shape their surroundings and bend reality more to their will. If you can travel easier, you can realize your travel wishes better.
Really, once you understand any "paradox", it ceases to be a paradox at all.
I always feel a bit silly referring to any "paradox" as such, when it's not a paradox anymore. When it now makes perfect sense.
Also I think this will play out for AI as a productivity multiplier. Instead of people having less work there will be more to do since more things are worth doing now. For the following few years at least.
Work expands to fill the available time, after all.