Realistically, I think what will happen is huge amounts of jobs will be lost, and large sections of people will starve.
It could be that the government will enact aid programs so that these people can survive, but really what it seems like needs to happen is that capitalism gets killed off and some form of Universal Basic Income is established.
The government and all corporations would move toward automation of all functions. You would be focused on creating a dedicated president LLM and checking his outputs properly, along with a president’s secretary, and a reporter, and a department of justice head, etc.
That is what i view as a perfect solution.
I think the government is more likely to either try to regulate away AI or make unemployment survivable. The government could also just let people starve.
regulating AI away purely to avoid the economic consequences kills the spirit of capitalism, and shouldn’t be done.