According to Wikipedia;

Post-scarcity is a theoretical economic situation in which most goods can be produced in great abundance with minimal human labor needed, so that they become available to all very cheaply or even freely.

Post-scarcity does not mean that scarcity has been eliminated for all goods and services but that all people can easily have their basic survival needs met along with some significant proportion of their desires for goods and services. Writers on the topic often emphasize that some commodities will remain scarce in a post-scarcity society.

How far away are we from theory becoming practice?

There are massive amounts of physical labor occurring daily around the globe, which won't be going away anytime soon. Knowledge work is becoming more and more crowded with increasingly similar products, services, and content.

The latest advances in software for language models make it seem as if we've uncovered something that could make knowledge workers far less valuable. Why pay a lawyer $2000 per hour if you can use a legal AI that delivers 99.9% the same results, why pay a software developer when ChatGPT and GitHub CoPilot can deliver similar results in a fraction of the time?

I think the answer to this is creativity.

In a post-scarcity world, where technology and abundance have taken care of the shortages of many goods and services, the concept of scarcity becomes redefined. It's likely that what is produced in abundance is uniform, and the varying becomes scarce.

Rare resources, works of art, artists, uniqueness, customized products, human time and attention, experiences and opportunities, intellectual property.

Creativity has always been valuable. I believe a post scarcity world will make clear which entrepreneurs are exercising true creative acts in an effort to innovate and advance the status quo.