It’s important to remember that the music business is one of the first places where corporations used technology to replace human workers.
Back in my day (not really) you could get a job as a live musician, performing at restaurants, cafes, and and lots of other places. Then, suddenly, people started to install record machines and buy music from record companies! So, you know, AI-generated music is just a progression of a centuries-old trend.
Quite ironically, this might be the disaster that causes the labels to license their libraries on more flexible terms to a larger variety of players, thus liberating the world from the current streaming service oligopoly.