AI-generated images would remove all the trust and admire for human talent in art, similar to how text-generation would remove trust and admire for human talent in writing. Same case for coding.

So, let's simulate that future. Since no one trusts your talent in coding, art or writing, you wouldn't care to do any of these. But the economy is built on the products and services which get their value based how much of human talent and effort is required to produce them.

So, the value of these services and products goes down as demand and trust goes down. No one knows or cares who is a good programmer in the team, who is great thinker and writer and who is a modern Picasso.

So, the motivation disappears for humans. There are no achievements to target, there is no way to impress others with your talent. This should lead to uniform workforce without much difference in talents. Pretty much a robot army.