Sounds like Jevons Paradox to me: Amount of output per worker-hour increases(cost drops edit sorry), paradoxically worker-hours _increase_.

Mechanism? New Use Cases become viable.

Just like LED lights and Virtual Machines made light-per-watt and workloads-per-server more efficient, what did we do with that efficiency? We didn't pocket the cash, we turned every billboard and many buildings into JumboTrons, and we made millions of new cheap cloud VMs to run hundreds of thousands of new little businesses that never would have happened.

Look at coding now: People are finishing side projects that they never would have, closing out old bugs or test coverage they never would have, starting side businesses they never would have before.

This is new demand being created before our eyes as the cost of knowledge work drops.