This is the "consumer choice" argument.
The problem is that consumers likely don't have that choice. The "free market" is really bad in incentivising good long term behavior, they favor short term gains for their stockholders. Thus they likely all switch to practices that seemingly lower cost or raise short term profits. If they can fire employees and replace them with AI, they will do so.
If they would think long term, they would prefer to hire humans instead of AI, because that way they would give their future customers money to buy their stuff. AI will not be their customer. They would pay them enough money to be a happy and good consumer.
Customer choice doesn't matter here, they either just have to buy whatever is cheapest, or die, because their employers (if they even have one) don't pay they enough for them to have choice, because short term profits.