It's not that simple to make good art, AI needs direction, without it.... it would just spill some generic stuff. Yes it looks good, but it would get boring very fast if every game looks the same.
It's up to the artists what would they do, if they don't try to use or learn AI and are just against it... want to ban it and so on... that's the worst possible way to go ahead. Because we have to know how developed an AI is... banning it, would make it go underground or only "for the military" which is the best way something like Skynet or something other and more dangerous is born. AI will either become part of our life or it will destroy us, there is just no way "around". So I vastly prefer the first option.
As a 3D artist myself, I have experimented with different AIs and generated many images. Based on my experience, I have a bleak outlook on the future of artists, especially on a smaller scale. With further development, there's not much hope for artists. AI will be able to do everything better than humans, it's not that artists, voice actors, and programmers are in a high-risk group. It's no wonder that many jobs will eventually be taken over by AI. This is also already evident from the successful use of AI in medicine and law.
Artists are currently in a difficult position, even though some argue that AI will help them, I disagree. In the past, hundreds of people worked on farms during the harvest season until tractors were invented, while now there are only a few people there at most. Similarly, AAA game like "The Last of Us Part II" had over 200 artists involved in its development, including 3D artists, concept artists, animators, lighting artists, UI designers, and some others. I can say with confidence that at the very least 90% of these people are losing their jobs when AI gets just a bit better. The demand for artists will be lower, the pay will be smaller, and artists will be unhappy in this cruel world that takes from us the ability to eat with the help of our creativity and the work we love so much. Many of these people will fail to find a job in this already very competitive market and will just go and make their own games, which will not be necessarily good. There'll be just more mediocre games at best, with a few gems here and there, of course, but most will just ultimately fail to feed their families. While companies adopting AI will profit GREATLY by not paying salaries for 90% of artists that will no longer be present. (I will also say that games may come down in price because of that, which will be beneficial for consumers and make them elated, but we know they wouldn't support us anyways, so yeah..)
I just hope that the pirate community will go crazy and set sail to deliver justice to people.
P.S. I'm not trying to have an extremely pessimistic view, I just see things as an artist, also I just hope that humanity will not purge itself.
