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Entirely depends on how good it would become.

It could also have some interesting avenues, like feeding some variables to the AI from say a video game (number and type of monsters on screen, mood etc.) to generate music reacting to what is happening on screen

It depends on how you define art. You can play music or shoot film or paint a picture. AI could do it as well. But the essence of what makes good art comes from soul, from experience by living, from relationships between us... that is created for stories that inspire.

That is not what AI would ever generate.

I would. Out of the bands I listen to maybe 5 of them I could name a single member. I'm a big reader but I couldn't tell you one thing about most of the authors other than their names.