I'm talking about videogames specifically, as it is the topic I'more familiar/invested in.
I definitely don't think they will disappear, or the current dynamics will change substantially, only their scale will.
As someone that is not artistically inclined, I have the same chance of producing appealing art and assets with AI than I have with pre-AI tools (yes, I tried).
But for people that ARE artistically inclined, skilled at using composition, color palettes, have strong fundamentals, etc... AI will be just another tool in their belt, and if they are able to integrate it with their own sensibilities and existing tools, there is little reason to think they won't be able to come up with art that it at least as compelling as that created with "old" tools, especially as now it is increasingly possible to exert a level of control on what is being generated.
Tools available to digital artists have evolved from having to paint pixel by pixel in the 80s to advanced layer and filter editing in photoshop (not to mention all the advanced tools available for 3D), this is "just" another evolution.
And yes, regardless of that, the market will be flooded by AI-generated slop, as the barriers of entry have lowered significantly; but the market was oversaturated already, and low-effort and asset flip games were a large part of daily releases.
Users still reward appealing, high-effort games, and they will likely keep doing so; the top of the iceberg will remain the same, and the ignored, forgotten bottom, augmented by the slop releases, will just get 10 times bigger.