The argument here is basically, let’s say a particular widget requires 3 human steps to make. If we replace the most expensive step with a cheaper automated alternative, the overall cost of the widget will fall and so demand for the widget will rise. And so even though the human effort to create one widget will reduce, the increase in demand will mean the reduced work per widget * new widget demand is often >= old work per widget * old widget demand.

The problem with this argument is that AI, or at least the vision of AI companies and governments are spending trillions of dollars on, purports to replace the human itself. Put another way it intends to automate all the 3 steps (as well as any ancillary services in marketing the widget, legal services in protecting the company, etc). So any increase in demand does not lead to any additional labor since the labor per unit is 0.

This video’s argument simply collapses the debate back to whether AI can largely replace human intelligence or not.