Why does this need any reconciliation? That's working as expected: when productivity improves in some sectors, we don't need as much labour there as before, and thus it needs to be shuffled around. This can have all kinds of knock-on effects.
As long as central bank is doing at least a halfway competent job, overall unemployment will stay low and stable. Ideally, you have people quit for a new job instead of getting fired, but in the grand scheme of things it doesn't make too much of a difference, as long as in aggregate they find new jobs.
An interesting example is furnished by the US between early 2006 and late 2007: hundreds of thousand people left employment in construction, and during that same period, the overall US unemployment rate stayed remarkably flat (hovering around 4.5% to 4.7%). The US economy was robust enough to handle a housing construction bust.
(Of course, after this was all done and dusted, some people declared that house prices were too high and the public demanded that they be brought down. So obligingly in 20008 the Fed engineered a recession that accomplished exactly that..)
There are two separate issues here: whether tech itself is bad, and whether the way it is deployed is bad. Better AI is, in principle, the kind of tech that can massively change the world for the better. In practice it is being deployed to maximize profits because that's what we chose to incentivize in our society above everything else, but the problem is obviously the incentives (and the people that they enable), not the tech itself.
(Well, the Soviets did have one sector that performed reasonably well, and that's partially because they set plenty of decent incentives there: weapons production and the military.)
Now you could say that the 'wrong' activities are profitable. And, I agree and I am all for eg CO2 taxes or making taxes on equity financing cheaper than those on debt and deposits (to incentivise companies, especially banks, to rely more on stocks than on debt, to decrease brittle leverage in the economy); or lowering subsidies for meat production or for burning food instead of eating it etc.
