I recall something I once heard about product marketing. The experiment was a product like jam, and they had 3 flavour options available in one case and 12 options available in another. It was a test on how hard it was to make a decision as well as how confident the person was they made the right decision later on.
One of Sartre's points on existentialism was that radical freedom leads to anxiety.
In some sense, AI is removing scarcity. It isn't clear to me that this is the same kind of thing as going from starvation to surplus. It is more like the jam case where we aren't increasing abundance in a total sense, we increasing the options within the existing surplus.