They only care about birth rate so that labor is devalued.

Historians argue that one of the contributing factor to the end of feudalism was the black death, because the laborers left had more bargaining power then before over the nobles/clergy to make demands like tenancy, humanistic values etc.

But the moment where AI is able to replace whole industries is when these sob stories will vanish, and in good conscience, who can have a kid when those are their prospects?

This isn't like the industrial revolution where people were just upskilled and shifted into other domains, there's only so many hospitality and service oriented jobs which can support the labor force writ large.