As someone who is unfortunately already stuck in the IT trap, I promise you AI isn't as magical as the hype makes it out to be. It's probably also not as bad as its worst dissenters think it is, but expectations of its capability are definitely light-years beyond its actual usefulness. The former scenario is fortunately very unlikely.

Complete industrial collapse? Well, that's unfortunately a much more realistic concern. Not a guarantee mind you, but not out of the realm of possibility. People will still need to poop though, and AI are terrible at conventional engineering and won't be piloting drones to fix pipes for a long, long time.