The most concerning thing that I've seen people have a reasonable fear of isn't of being generally replaced- even if an AI could do literally anything, it wouldn't replace artists, in my opinion. The more tangible fear is of artists being replaced by themselves. There's already been several artists who have had their work fed into algorithms to produce material similar to what they make- and utilizing their name as a tag to specifically get it. Fascinating as that is, it's pretty threatening to be at risk of being run out of your work by a mechanical duplicate of yourself, and angers people too, because their work was put through a machine to duplicate it without their consent or knowledge.
Solving that issue of random people using an artist's own work to nullify them isn't something to just snicker at I think. The one thing I think could be hugely damaging to the algorithm development scene is people getting sick of their shit getting ripped and fed to learning machines, so they take it to court and put the development company through the wringer for something along the lines of using stolen intellectual property. After all, the algorithms have internal references, and if they lose a huge chunk of them, then you're back to square one. I think that's something that AI developers have to get ready for the possibility of.