We are pursuing it because there are huge potential profits in it and western governments are afraid that if they don't do it the Chinese or Russians could get it first putting the west at a disadvantage.

There are historical precedents. The taming of fire, agriculture, the printing press, steam engines, learning how to use electricity, the internal combustion engine, flight and electronic computers. All changed society in massive ways. Humanity adapted.

You should read The Singularity is Near. A fairly rosy take on the Singularity. You should also read Our Final Invention a less optimistic view of the Singularity.

Overall, I would say relax. The Singularity may happen tomorrow, but it is more likely to occur in the 2060s or latter.