If there’s more work than resources, then is that low value work or is there a reason the business is unable to increase resources? AI as a race to the bottom may be productive but not sure it will be societally good.

Not low-value or it just wouldn't be on the board. Lower value? Maybe, but there are many, many reasons things get pushed down the backlog. As many reasons as there are kinds of companies. Most people don't work at one of the big tech companies where work priorities and business value are so stratified. There are businesses that experience seasonality, so many of the R&D activities get put on the backburner until the busy season is over. There are businesses that have high correctness standards, where bigger changes require more scrutiny, are harder to fit into a sprint, and end up getting passed over for smaller tasks. And some businesses just require a lot of contextual knowledge. I wouldn't trust an AI to do a payroll calculation or tabulate votes, for instance, any more than I would trust a brand new employee to dive into the deep end on those tasks.