Everybody is self-sufficient or close to it, so the economic demands of the world are limited. Money is boring so everyone uses barter. The most common economic transaction is trading foods and spices, because nobody can manage to personally hunt/grow all of them. Some people are really good at trading and enjoy it, so they amass huge hoards of a couple of goods over the course of a few days then throw a big party. Doing this well is considered a prestigious thing to do.
People live in small tribes that handle their disputes by talking them out with everyone in the tribe. If people disagree with their tribe too often, they just find a new one that fits them better. Anybody who has a more global idea makes their new thing and sends it out into the wilderness, and if the AI in charge of the world decides it would make the world better, it becomes common to an appropriate extent. The easiest thing to get the AI to accept are new kinds of monsters.
Household appliances are closer to modern standards, but mostly technology is pre-industrial. For many of their needs, people live off the land. For everything else, there's magic.
Continued effort and study raises your raw intelligence at a glacial rate indefinitely, even past what would fit in an unmodified human brain, but people have better things to do than pursue that road until they're scary. Everyone would come across as uncannily smart by modern standards, but much of this is nutrition, happy lives, and access to really good therapy instead of raw brain stuff. There's only one superhuman AI, which mostly stays out of the way except to make sure you bump into people you'd make good friends with and that sort of thing.