What happens to that labor if everyone that would hire them previously is now using cheaper artificial labor? They don't exactly have the capital to make use of artificial labor themselves, nor do they have the skills to work other jobs. The problem is solved for the 10% who are citizens. Great! They don't have a moral quandary regarding slave labor anymore (notwithstanding that there are other ways to prevent being in that situation). But, the 90% of the population that is now displaced has a very serious problem if they cannot earn an income with which to feed or home themselves or their families.
> What happens to that labor if everyone that would hire them previously is now using cheaper artificial labor?
They should go back home and invent AI and robots too.
You don't let it get to the point where only 10% has access to artificial labor. But also it should be pretty difficult for that to happen as the transition is gradual, not instant, so there will be a soft tipping point where access to artificial labor will be provided voluntarily or there will be revolution. Or mass death by deprivation.