Actually the idea of "machines doing all the work" wouldn't be a too alien idea to the people leading the industrial revolution. The machines are indeed doing almost all of it now if you take into account what "work" meant back then.
It's not "robots do all the work" that's the issue here. It's the "AI plans the economy" that causes me to worry. AI in general gives me the heebie-jeebies, putting one in charge of the economy just terrifies me. Maybe it would work. For a while. Until the AI got it into it's head that humans were mucking up it's smooth flow of goods... More likely, like any previous attempt at central planning, it will fail utterly.
Let the market decide the prices of goods and services, and the prices will decide what gets produced.