It's only a matter of time before we get a good NSFW image generation algorithm. Text erotica generation is already a not-insignificant part of the public AI world (remember AI dungeon? Most people used it for porn). The question is whether it's going to come out of the established adult industry or not. There are clear benefits (no real humans needed anymore, personalized fetish material forever, etc.), the only issue is whether they're willing to deal with the inevitable bad press (e.g. fake images of real people, taboos like underage content or disturbing imagery). I wouldn't be surprised if any models from the adult industry will basically be heavily gimped from the start to avoid liability.