> Your landlord demands money every month.

As if the "AI champion" will have a landlord. Methinks you've not thought this through.

> So do your local utilities - power, gas, water, sewage, garbage collection, phone, internet, etc.

Unless he owns all that too. Even if that doesn't play out, safe to say that in said hypothetical future it will be owned by a very small group of people. And while they may still have some trade amongst themselves, there will still be no need to sell things to the average Joe.

> Is magical AI going to materialize food out of nowhere for you, with no need for any raw materials to be consumed in the process? Will it make clothes out of nothing?

The magical AI will, yes. But as it is magical, you are right that this future branch is unlikely. Much more likely is the future where people remain relevant.

From their view, if there is no need to extract work from the average Joe, there is no need for the average Joe at all.