At least for art - I don't think you'll find anyone who actually enjoys art hanging up anything produced by AI on their walls. For these kinds of "customers", they could equally easily frame & hang up a poster of the Mona Lisa. Artists are not at threat, if anything, AI makes original artworks more precious & enjoyable.
My worry is that, at least among the artists I know, many kept themselves afloat early career by doing commercial freelance jobs like illustrations for local events or companies. Those kinds of jobs might largely vanish.
On the other hand, with the internet inevitably becoming swamped by AI generated content, I can definitely see a de-digitalization of art moving into offline spaces. At least for independent work, you don’t necessarily need mass appeal or exposure, but rather access to individuals and small groups with an actual willingness to pay for art.
That's assuming that the only market is stuff people are hanging up. The games industry, one that already takes advantage of its workers, is going to love this to the detriment of really passionate artists who love their craft and industry.
I think this is only true in a vague and abstract way. In reality, AI devalues labor (in general) and the worth of artists (in specific).
Good art requires good patronage and institutional support in turn. No one will have time to produce the next Mona Lisa if they're barely able to make end's meet working a slavish factory job. That's doubly true when the vocations that supported artists—either antiquated, modern, or contemporary (painter, typesetter, graphic designer, etc.)—vanish because AI can do "just about as well."
Art isn't just a divine presence gracing the souls of those deemed most worthy, it's a collection of skills and knowledge that must be built by community over decades of struggle.
On top of the generation of slop, AI is removing some of the final protections that hold these pillars up. That is what should keep us up at night.