This logic is always stupid. Sure, it's a tool at the current level of capability. People aren't afraid of current ai.
There is still a long way to go to A.I become truly intelligent, even the sophisticated LLM we see today still can compete with the human mind, it cannot think on its own, it needs prompts, since it is a language model.
I have no doubt that in the future, technology will be so advanced that human work will no longer be required for most things in society, but when we cross this road, society itself will need to chance to accommodate this new reality.
It is in some sense a philosophical question. Can we tax the machine work? How people will sustain themselves. If machines do all the work, who will consume that work? Do you believe that the majority of the population will watch their means of living being taking away from them peacefully?
I believe A.I. will continue to be a tool to do things that we humans suck at, but it will not substitute us completely, even if artificially forced just to keep the economy going. I'll give you an example:
Even though it's much cheaper and efficient to produce electronics in China, many companies have factories in Brazil. Why? Because Brazil taxes imports and to be competitive in our market they bring the production to Brazil, no doubt this increases the production cost, but it's necessary to have better price and sell the volumes they need to be profitable. Maybe in the future AI will be cheaper and more efficient than human work, but without consumers that will be meaningless to the economy.