"Live with" is an idiom which means to accept, tolerate, or come to terms with an unavoidable, difficult, or imperfect situation.
We do indeed have to live with the possibility of asteroid impact, nuclear war, etc. That doesn't imply anything about those scenarios being alive.
The idiom in question by OP and TFA is "to live side by side with", lauding AI with a life and ranking it a neighbor hierarchy wise.
I don't live side by side with the possibility of an asteroid impact, nuclear war, etc., I just live with that possibility.