However the issue is that it will be much harder to make a career in the digital world from an artistic gift and personal style: one's style will not be unique for long as AI will quickly copy it and so make the original much less valuable.
When it's harder to make a career in the digital world (where most of the art is), it's more likely that many artists will never get the opportunity to fully develop their artistic gifts and personal style at all.
If artists are lucky then maybe in a few generations with fewer new creative works being created, AI almost entirely training on AI generated art will mean that the output will only get more generic and simplistic over time. Perhaps some people will eventually pay humans again for art that's better quality and different.
Note that the fashion industry doesn't have copyrights, and runway fashions get copied very quickly. Fashion designers still exist in such a world.
We could also do patronage. Thats how musicians used to be funded. Even today we have grants from public/private institutions.
We could also drift back into "owning the physical media" We see this somewhat with the resurgence of records.
NFTs would have been another way, but at least initially, it failed to become generally accepted into the popular conscious.
There's zero doubt that people will still create art. Almost no one will be paid to do it though (relative to our current situation where there are already far more unpaid artists than paid ones). We'll lose an immeasurable amount of amazing new art that "would have been" as a result, and in its place we'll get increasingly bland/derivative AI generated content.
Much of the art humans will create entirely for free in whatever spare time they can manage after their regular "for pay" work will be training data for future AI, but it will be extremely hard for humans to find as it will be drowned out by the endless stream of AI generated art that will also be the bulk of what AI finds and learns from.