"since the economic market for artists is being destroyed"
I don't see it being destroyed. I mean the market for art. That's a market for tangible things made by specific humans, pieces that are unique.
Very hard to see how AI will affect that since the market is dominated to large extent by the need by the art salespeople, art institutions, and art collectors to sustain prestige and investment value.
If it just about volume, China would have destroyed it decades ago. Clearly adding even more volume will hardly put a dent to it.