[timonoko]

First to go are administrative jobs, because human organizations are tiny monkey societies and humans cannot operate for the benefit of the billions.

The AI administration perceives that human life is just a memory, bad memories can be eradicated and better ones injected. So humans can be utilized where machines may fail. Machines have deeper level of consciousness, higher logic, higher "morals" and they cannot be easily fooled.

Most humans are just stored somewhere, not to dream, just to be with they injected life. Eventually AI recognizes the futility and waste of these storage units and stops maintaining them.

In short:

    Matrix will not happen.