How I see this happening:
* AGI gets falsely presented as a real thing. The singularitists amplify this.
* Snake-oil vendors pop up, offering supposedly AGI-based solutions for replacing whole swaths of jobs. Mid-2000s style outsourcing comes back in vogue.
* These fail utterly or get revealed as theranos-type scams backed by offshore labor.
* Public opinion turns sharply against CS generally, resulting in deep funding cuts, bad legislation, etc.