Current AI for content production is a joke. Even traditional procedural content production (as seen in roguelikes) does a better job, and I hate the pointless empty repetitive levels in roguelikes. Photography and 3D scanning are much more credible threats.
Photography basically killed the market for realistic paintings from life. There is no longer anything special about having a realistic representation of an object. So what do artists do? They paint in less realistic styles. They paint things that don't exist in real life. They turn photography into its own art form. A few continue painting realistic paintings from life for an ever smaller audience. Art goes on, but a whole bunch of individual artists don't make the transition and lose their jobs.