Once again, see Rainbows End, by Vernor Vinge. Foresaw exactly this. Written in 2006, takes place in 2025.

I just finished re-reading this a month ago. In the book, the process went a little further. The books were shredded into confetti-sized pieces first, then as the shreds were blown about in the air, many photos were taken, and then AI was used to stitch the fragmentary pieces of text together into the original pages.