If energy is free, the world will focus on other problems to solve. The existing energy producers and beneficiaries won’t be very happy and will do whatever it takes to survive.
But the energy producers could focus on a niche and pivot to what free energy can’t achieve, maybe it is the concentration that propels us to outer space or complementary technology for better delivery and human experience?
If AI made ideas free and abundant, people will move on and focus on something else. Like anything those that refused to change will be unhappy and will not survive.