That's not what they're asking. What happens to the individuals if AI can automate a large portion of service jobs? A lot of people who lost their jobs due to disrupting innovations never managed to return to their previous income level. And regardless, how does society survive a potential collapse of employment in the service sectors? The service industry employs ~80% of the employed population. If "just" 50% of service jobs can be automated, you've got ~60 million people losing their livelihood in the US alone. New jobs don't spring up overnight, especially if humans are redundant in the service industry. What happens to those 60 million people?
In a more AI maximal case it will solve new problems, the increase in GDP from this case is very large.