Here’s something - for every “best” person in a given field, there is almost certainly several other people alive who could perform similarly but didn’t have the same opportunities.
In your given scenario, there are _already_ so-called “losers” who lose “fairly”, but also lots of “losers” who really shouldn’t have lost.
Did you ever consider any of those people before this? Don’t you think they’ve been similarly depressed by the unfair advantages it seems others have in life? How is that _at all_ different from being inferior to an automatic process, in terms of the impact, and why are you only worrying about this issue now that it’s more likely to effect your chances specifically?
Is it possible that viewing the world through a competitive lens is toxic? That humans should seek out happiness rather than awards? Peace rather than conflict?
I’m not saying it isn’t going to be hard for people to readjust. But certainly, the notion that “I’m gonna be the best” is something that results in a more toxic world, AI or no.