Assuming a long enough timeline, I can’t see why they wouldn’t. But that’s just a subjective guess on my part.
I think AI content creation will affect everything. Publishing will only be tiny part of that...but a significant part if that’s your industry.
Agreed that AI-assistive writing is pretty close to the point where it can save you the hassle of thinking up interesting ways of describing minor characters and locations, but of course when it reaches that level there are massive areas of content creation for AI companies which are more lucrative than novel writing and don't require further technological advances...