I wouldn't expect it to replace people. It will make workers more productive. However, because it is already pretty well spread through most companies, those productivity gains will only lead to competitive advantages for companies with highly skilled workers.
Think of it like a chainsaw for lumberjacks. A lumberjack with a chainsaw is going to be far more productive than one with just a hand axe. But since every company equips their lumberjacks with chainsaws, they aren't really at an advantage, chainsaws are now just a cost of entry for a company. Also, lumberjacks are required to know how to use a chainsaw. But they are ok.
For knowledge workers, AI is our new chainsaw. We're going to learn to use it. And it's going to be part of our jobs going forward. From my own experience, it has it's uses and is pretty good at certain tasks. It can also be endlessly frustrating at tasks where it's not well suited or the training isn't up to snuff. We just have to learn and adjust to a world where the tool exists and is used everywhere. The genie isn't going back in the bottle.