Here's the crux of the argument
Who's currently telling everyone the world will get taken over by AI? Who's saying be cautious about it? Largely, it's the biggest firms in the world. While I have a huge amount of respect for these companies and the work/people/knowledge they have, they have a cavernous gap when it comes to dealing with smaller companies. Want to Speak Directly to Microsoft? Google? Facebook? Amazon (at a reasonable level, not call-centre scripted fodder)? You'd better be from a relatively large company/service house, otherwise they're not interested. Part of the reason they're not interested is because there is a massive amount of education/conversation to have with a relatively uneducated customer (in industry lingo/technology). These people now are still jaw-dropped at the very concept of cloud computing, but still aren't really sure how to make use of it. Big Data is still a twinkle in the eye to most of them, it's just not something that's even on their radar.
Talking of which, how many people on here (which is a very business tech focused site) would know the ins and outs of AWS/Azure? How many people know how to use Azure DataLake/ML, How about AWS EMR/ML? Big Data isn't an easy subject, machine learning is even harder. There aren't vast numbers of people that really understand how this stuff ticks, and that's within our own industry.
Now, imagine trying to work in a normal organisation, a company that uses technology to drive business change. Imagine trying to pitch into the team the AI piece, of how it'll change the world and what not. When you get to grass-roots, most of the "You'll entirely replace a human" so it's cheaper stuff falls flat on it's arse. It's a technology investment that'll for sure, At best, if it goes well, will increase the productivity of said human.
At the moment, there are simply too many variables, even in the knowledge economy (i.e. being paid for what you know/skills/experience). When it comes to manual labour tasks/real-world environment scenarios, this stuff is even further away from being ready. Imagine Tescos delivering your shopping by robot. How does it navigate the basement steps? how does it figure out where the apartment is around the sidepath? What about un-even ground? Importantly in other industries, how does it charge? Battery technology simply cannot run a robot, nor will be able to in the immediate future?
I don't see AI going away, I welcome it and think it'll help humans work better, much like other software has. I think the projects that'll work will be the ones that augment humans, I think the ones that hit the wall and bankrupt companies will (mostly, it'll work in some limited use cases) be the full replacement models.
I see this a bit like the concept of Mutually Assured Destruction (https://en.wikipedia.org/wiki/Mutual_assured_destruction). If two businesses exist in the same market, if one has AI, it'll win, if both have AI, they'll likely compete/be close to each other. How do you improve the AI/run better processes? You need humans still. Also, you've paid Microsoft/Google/Amazon a truck load of money in the AI Arms race.
Of course, I could be completely wrong, and if we're all replaced, it begs the question of what do you do with all the proles that cannot afford to buy your products anymore but want to consume the earths natural resources? Enter Evil Genius played by Samuel Jackson from The Kingsmen? The 1% go for an End of World Party while the planet gets "cleansed"? :)