Obligatory Banks Culture universe reference: https://en.wikipedia.org/wiki/Culture_series

Basically when the "minds" are benevolent deities all scenarios are possible including this one. We can spend our time with cats, we can even turn into cats...as he writes about "Changers" who genetically alter themselves or shift species at whim.

And as always if someone acts up and violates the Golden Rule they get a slap drone: https://theculture.fandom.com/wiki/Slap-drone