The bad outcome is that people can't get clothes at all. The worry about losing jobs is a legitimate worry that these companies will generate a limitless supply of art and code but they will use price fixing to ensure that all the money that previously went to a lot of workers instead goes to a small number of people who own these companies, and the workers will be destitute.

I'd actually be fine weaving clothes by hand a few hours a month if it meant I had no other work to do. But at the moment there are still people who don't own enough if any clothes and work far more than I do. And the question is if the people building AI can be trusted to liberate those people from slavery.