This is the type of business that's going to be hit hard by AI. And the type of businesses that survive will be the ones that integrate AI into their business the most successfully. It's an enabler, a multiplier. It's just another tool and those wielding the tools the best, tend to do well.

Taking a moral stance against AI might make you feel good but doesn't serve the customer in the end. They need value for money. And you can get a lot of value from AI these days; especially if you are doing marketing, frontend design, etc. and all the other stuff a studio like this would be doing.

The expertise and skill still matter. But customers are going to get a lot further without such a studio and the remaining market is going to be smaller and much more competitive.

There's a lot of other work emerging though. IMHO the software integration market is where the action is going to be for the next decade or so. Legacy ERP systems, finance, insurance, medical software, etc. None of that stuff is going away or at risk of being replaced with some vibe coded thing. There are decades worth of still widely used and critically important software that can be integrated, adapted, etc. for the modern era. That work can be partly AI assisted of course. But you need to deeply understand the current market to be credible there. For any new things, the ambition level is just going to be much higher and require more skill.

Arguing against progress as it is happening is as old as the tech industry. It never works. There's a generation of new programmers coming into the market and they are not going to hold back.