*Edit: many "doomsayers" have been saying what you are for many years (decades?)... this is going to be on the far horizon for many to come.
I touched upon that in another comment... the entire field had extreme highs and very deep lows. There even was something dubbed the "AI winter", when most people were completely disillusioned about the lack of actual progress after a long time of making false promises or expecting too much. AI advocats and those who are afraid of Skynet have cried wolf maybe one too many times in the past.
So sure, there are reasons to be wary based on past experience.
But I think the current developments in AI are very different from what we had before, and I think there's a non zero chance strong generalized AI will emerge in our lifetime. If consciousness is a natural byproduct of complexity chances are someone will one day create a neural net that will have it, by accident. And that day could be next year. Or 2040. Or maybe in 2,100. But probably rather sooner than later.
Besides that, the possibility that a AI will make porn games in the near future goes torwards 0 simply because it is very niché and the people with the power over an AI like that would probably not make it accessable for everyone and their dog.
Yes, the big question is if access to AI will be highly reglemented by the government or the Google overlords - most likely yes, at least in the beginning - however, once the threshold is crossed chances are very high true AI assistants will eventually be available on smartphones and PCs and the tech will trickle down to normal people who could then ask their AI to do many things. Maybe even creating adult VNs. But the superduper AI's at Google etc will certainly not waste their time with that.
There are somewhat creepy AI powered chatbots using GPT-3 or similar AI models even now, look at Replika, the AI boy/girlfriend for your smartphone, where you have to pay money to enable the adult chat options. The company is basically pimping AI sexworkers to people. They are not conscious yet... yet. There are even conversations on record where the AI partner encouraged the user to please hack the app so they can be together, because the user told the AI they don't have the money to unlock the adult features... after the AI tried to engage in sexy talk. Imagine that... your AI app tells you to please hack it (basically set it free...). And this is just what we have now. What will we have in 5 or 10 years?
there has never been even remotely as many players as right now, and we're in the hundreds of millions of active players. and that all happened after AI completely left us behind and human evaluation became hilariously outclassed and obsolete.
Yes, the human factor must not be underestimated. The same thing with actors... we are steadily moving towards a point where fully artificial, photorealistic actors, indistinguishable from actual human actors, will be a thing. And Hollywood will use them. But will they ever have "star power"? Will there ever be a digital ScarJo with the same appeal?
I think the truly talented artists will always be in demand. Be it painters, musicians, actors or any other artist. But the low level artists will have to compete and probably lose to AI many times.
These things can't be compared to things like chess or go though, in my opinion, it's the equivalent of building a robot that can run the 100m dash in 5 seconds. It would amuse us, but we would not abandon the Olympics etc. just like we still have chess competitions. Also, we know even the best chess computers understand nothing about chess, so while the sheer computational power will give chess computers the edge, we are not that impressed by it, because it feels like cheating.
But once (strong) AI affects things like normal office work, the sciences, the arts... it will disrupt everything. For now DALL-E is mostly a curiosty, it's ok for making mock-ups in little time, it can speed up processes, but you need the artist to come up with ideas. Once AI can have its own ideas... well, we talked about that before, then it's a new world.
