It already exists
Atleast in very produced "crisp" sounding genres. I mean, there's already AI generated Djent and EDM that exists right now that sounds almost identical to any generic modern Djent or Metalcore or poppy EDM artist. But do you actually know anyone who GENUINELY listens to this??? Do you know anyone who's favourite Djent song is an AI generated song, or someone who actually listens to AI generated music and has an AI generated YouTube channel as their "favourite band?". Someone whose top tracks on spotify are ai generated?
I think for an overwhelming majority of people the answer is "no". Because while we like music, what we also like equally as much are MUSICIANS. We like the idea that a band had intention behind this album and is working on a growing discography. We like learning about the members, following our favourite popstars or our favourite niche indie artists. Someone AI generating a Bring Me The Horizon song doesn't bring the same excitement as the band releasing a track themselves. There's plenty of AI generated features of famous rappers on random soundcloud tracks, but no Kanye West or Drake fan is genuinely interested in an AI imitation of those guys.
Yes, it may replace the background music used in a Colgate commercial, or a 24/7 lofi livestream, but I don't see any universe in which any scene of music's fans will genuinely start listening to AI generated music over actual human bands or artists in the scene. Obviously some people will, but the idea that a majority of people will stop listening to human music because they can just generate AI music is absurd to me.
It's the same reason you rarely see someone hanging up an AI generated painting on their wall, or the same reason people commission artists to paint their wedding portraits sometimes even though a photo is technically "better" at capturing the moment. The novelty of a human creating a piece of art is what gives it half its value.
Audio and visual media that doesn't exist as "art" (commercial art, the rendering of CGI for a specific shot, background music for commercials or malls, presentation slides, etc.) may be almost entirely replaced because they exist in commercial settings and have tasks that need to be as efficient and cost-effective as possible, but "art" that seeks to be artistic will always have a thriving human scene, because it's just more interesting when it has people behind it, and we can see that happening right now.