Sadly, the likely outcome is drop in the quality of life for everyone involved.
That makes no sense.
Look at it from a macro-economic perspective: The reason we're moving to automation is because it increases efficiency, allowing us to produce more goods with fewer resources. That will increase average standard of living.
There are a couple of ways it could go wrong, of course. One is that the increased efficiency and therefore increased wealth could end up concentrated in the hands a small percentage of super-wealthy people. We've actually seen a lot of this over the last few decades, but we've seen it previously during other technology-driven economic restructurings as well, and what always happens is that competition eventually drives the margins of the super successful down and in the end the wealth ends up getting spread more broadly.
That points to the other way it could go wrong: The common man only gets his share of the increased wealth by doing something to earn it. Even though increased efficiency means there's more to go around, barring some sort of large scale government-driven redistribution, you still have to work for your share of it... which means you have to be able to do something that others who have wealth consider of sufficient value to pay you. So the other way it could go wrong is that there may simply be nothing available for such people to do.
That last is also a risk we've seen bandied about in past economic shifts, especially the shift from agricultural to industrial labor. What has happened in the past is that we've created new kinds of jobs doing previously unheard-of or even previously-frivolous things. I don't see any reason that this time should be different. I expect the transition to be painful -- and the faster it happens the more painful it will be -- but I don't think there's any end to what people want. People with resources will always want things that people without resources can supply. I don't claim to have any idea what those things will be.
It's also possible that I'm wrong, and that we'll have to take a socialistic approach to distributing the fruits of automation-driven productivity increases. I don't think so, and I think we should be careful not to move that direction too quickly, because it has huge negative impacts on productivity and we're going to need all of the productivity increases we can get, but it is possible.