we might actually lose the traits that make us human

I think that we have already "lost" a great many of these traits, that they have been conditioned out of our use. We still have them, but cannot use them because we've been told we do not have them. Intuition, for instance, is no longer valued. Career adventurism is not advised. Emotions are wrongly, I believe, seen as separate from intelligence.

This is the intelligence gap you speak of. We are every bit as smart, but don't know how to employ our full intelligence. And if we make a large shift into using AI for everything, it will be nails in our intelligence coffins.

But, it could also be that there is another technological breakthrough at the genetic level that can change our intelligence to the level required that we can become aware of our interconnectedness and reliance on each other and our self-interested actions align with the self- interested actions of everyone else too.

I doubt it! I prefer to believe that nothing is more powerful than human-ness on this planet, that tinkering with genetics is playing god, and that we must get back to being fully human, not slaves to governments and their toys of control. AI could be the ultimate of those. I refuse to deliberately use AI for anything, although that is becoming more and more difficult.