No, it does not stand, because you think linearly. Companies can't simply drop 33% of employees because there is competition. If competition uses both humans and AI they will get more value from both. No AI has sufficient autonomy or capability to be held accountable for its mistakes.
There is less upswing in reducing costs than in increasing profits. Companies want to increase profits actually, not just reduce costs which will be eaten away by competition. In a world where everyone has the same AIs, human still make the difference.
You're assuming everyone can compete on service alone, and that's just not the case. If the quality of the product is good enough, price becomes the more important metric.
Think about Meta. A simple example is Metaverse. Mistakes and competition? Then, look at their market capitalization over the last three years.