Our current AIs are kinda pathetic, and might realistically only replace mediocre artists. However, people who buy art, can’t tell the difference between good art and mediocre art, so the financial impact could be felt by a larger number of people.

It’s a bit like comparing factory made clothes to properly tailored ones. We still have both, but machines have clearly won this race. Besides, only very few people appreciate tailored clothes so much that they are also willing to pay for them. Most don’t, so they wear cheap lower quality clothes instead. I think the same will happen to music and paintings too.