Liberal democracy’s rise coincided with the need for a productive populace for economic and military strength. As AI replaces human labor and soldiers, the state's pragmatic incentive to empower citizens and protect their freedoms disappears, risking a return to authoritarianism.

For some policy experts, the most realistic nightmare scenario is not a rogue superintelligence but a socio-economic collapse into techno-feudalism. In this future, AI concentrates power and wealth, creating a rentier state with a small ruling class and a large population with minimal economic agency or purpose.

Even if AI remains aligned and power isn't dangerously concentrated, humanity could still face gradual disempowerment. In this scenario, humans are simply competed out of the economy and lose agency in a world that becomes unfriendly to them. Currently, few proposals exist to prevent this outcome.

When a state's power derives from AI rather than human labor, its dependence on its citizens diminishes. This creates a dangerous political risk, as the government loses the incentive to serve the populace, potentially leading to authoritarian regimes that are immune to popular revolt.

Unlike past technologies that automated specific tasks, AI threatens to automate all economically valuable human labor. This removes the fundamental, non-seizable leverage that the general populace holds, creating a power vacuum that can be filled by capital owners.

The AI revolution will likely bifurcate the job market into a barbell shape. A 'productive class' will master AI and remain economically viable, while an 'unproductive or charity class' will be forced out of the system. This economic displacement will likely fuel anger, resentment, and social violence.

A future scenario where elections persist, but AI systems controlled by corporations automate candidate nominations. The public votes on candidates pre-selected to serve corporate interests, rendering democratic processes hollow while people are placated with material handouts.

As AIs increasingly perform all economically necessary work, the incentive for entities like governments and corporations to invest in human capital may disappear. This creates a long-term risk of a society where humans are no longer seen as a necessary resource to cultivate, leading to a permanent dependency.

A large, unemployed populace with free time and powerful AI assistants represents a massive potential for civil disobedience. This heightened capacity to disrupt will be seen as an existential threat to state stability, compelling governments to implement repressive measures and curtail previously tolerated freedoms.