AI has already reached near-ubiquity, especially in the west. We're going through the opening stages of a protracted adjustment period where more and more jobs are being replaced by AI.
For now, the saving grace is that AI is "dumb" and doesn't see all that well.
That means the jobs AI replaced in the past and some that it is replacing now are such that this "replacement" process hasn't permeated enough of the economy to where people have largely felt pushed to that breaking point of resistance.
The beginning misgivings and bristling against tech are definitely there, but we're not quite to that point where widespread civil unrest is the result. But, as AI gets smarter and sees more clearly and is capable of more specialized tasks, more fine-motor tasks, greater intellectual tasks, the adjustment period is likely to get pretty rough.
Politicians are getting more and more up to speed on the idea of a basic income all the time anticipating the "roughness" of that seemingly inevitable human push-back, but like anything else, implementing some kind of government program to off-set lost human labor will be a slow and arduous process fraught with a lot of fighting, in-fighting, and rancorous debate. It could get messy, and that might be understating things.
Having said that, it's the advent of artificial general intelligence that will really change everything. That's when machines surpass the human brain's abilities in pattern recognition, computational power, and vision. Then the tech's self-replicating would begin about a quadrillionth of a second later. Everything would change, and I mean fast.
Humans can put up a building or construct a road in a matter of weeks or months. A computer would do it in minutes. Want to know when the Singularity is upon us? Just look out your window, you'll see it in a hurry. But, will you be capable of comprehending what you're looking at?
However, that's true artificial general intelligence, and obviously we're not there yet.
When will we get there? Who knows? Some experts in the field say 15 years. I think that's crazily optimistic, or pessimistic depending on your point of view.
Some experts have timed the advent of true artificial general intelligence to right around 2045. Others say it's more than a century in the offing. I think 2045 seems optimistic as well, but I'd be willing to grant it's more likely to happen sooner than 100 years from now.
In terms of what it would mean for capitalism, well, as I'd said it would change everything. Capitalism, being driven by scarcity, likely wouldn't survive mass self-replicating nano-factories available to all.
Since tech tends to improve quickly, and yet shrink at the same time, it'd be tough for a would-be manufacturer/distributor/retailer to compete with a factory that used to be the size of an airplane hangar now sitting on someone's desk capable of churning out usable goods at low to no cost. The incentive to conglomerate to a business of any size to sell whatever to whomever would fade just as fast.
Capitalism now revolves a lot around planned obsolescence where goods are purposefully built not to last in order to ensure repeated consumption. It's a subscription model unto itself. But, it's also a system that requires a lot of land, people, and resources.
Meanwhile, a machine in your home constructing a myriad of goods from materials that last a long time is going to render the old way of doing things moot in a hurry.
Other aspects of society would likely follow this trend. Who needs a doctor when the system that built your home and monitors you can pin-point what's wrong with you in seconds and perform the necessary medical interventions in minutes?
What use, in this hypothetical scenario, would there be for hospitals? What about med schools? Or universities in general? What about pharmaceutical companies? Or factories? Warehouses? Stores? Or even roads?
People say that when the machines take over, or rather when tech reaches the point that it is "smarter" than humans that the biosphere will suffer or be destroyed. I tend to think that like all technological innovation things will shrink, opening up more and more land.
Space that was used for malls, schools, hospitals, banks, corporate headquarters, factories, storage, transportation, construction, food production, energy...that's all space that will be freed up when "the system" assumes all of these roles. And any raw materials the system needs to build whatever will likely come via a process of inventorying what the Earth has available for use, an inventory it will endeavor to keep replenished as well.
Then any and all space will be used for human habitation almost exclusively. And not necessarily stacked up in giant strato-scrapers either. Though, I will grant that vertical farming might become more of a thing as it might make more sense to build agriculture up rather than out. But, there might be a means for creating human homes where those wishing to co-habitate together will do so on plots of land and surrounded by nature with plenty to go around.
This assumes of course that "the system" won't "decide" to ignore our existence and leave us in the dust or squish us like bugs because we are not optimal to the smooth running of said system.
But, as I'd said, in the meantime we have an adjustment period to live through.
We have to think about what kind of society we'd like to build or foster as we're led closer and closer to the complete shedding of the yoke of employment, or rather as we shed the necessity of earning an income. It continues to be an interesting discussion.