No, the worst impact of AI artis going to be AI art destroying 75% (90%?) of all art jobs.
Of course that's terrible for artists, but like most tech advances good for everyone it doesn't screw over.
Of course all the other AI is going to screw over everyone else too in a ton of ways soooo...
Count me in a different camp, then. When it comes to stories, I prefer ones with intended arcs and actual endings.
You'd still have those, possibly even AI generated, too.
No, you wouldn't. That's not how industrialisation works.
As long as enough people want it people will have AI make it. At first it will be extremely expensive and cost a ton, but eventually people won't be required to do anything more then say they want it.
You want GOT season 8 but not crap? Done.
You want GOT but the 4th season is the final one that closes off all the plot holes? Sure, why not.
You want a GOT style show that is just as good but only lasts 3 seasons? Done as well.
And of course eventually no humans will need to be involved at all and they can make it last 5000 seasons instead as long as there are enough people to pay the server costs to keep making it.
What won't exist is large expensive stuff done only by humans. After all no company will make a bunch of shows for 50x the price any more then they make anime these days without using computers.
Passion projects will still exist, but as a tiny niche even compared to what they currently occupy.