I think AI could eventually get us to the point where we have MORE handmade items, if we desire, and build a more efficient system where we could access the creativity of people. By "people" I include both humans and future sentient AI (I'm imagining this point would be post 2030s/2040s)

Consumption of creative works is for entertainment, but another aspect is communication. Sometimes we purely want to be entertained, but other times we want to connect with the creators and see into their minds. I believe this will remain the case.

There will be an overload of content, from quickly generated content and (hopefully) also from creative people who will have more opportunities to express themselves. So, there might be changes to the system of how it's consumed, how people share content, how people make a living, how works can be relevant or become famous on a massive scale. I can't predict exactly what will happen, but I can imagine new systems coming into place, as they always have....and there might be a chaotic adjustment period if AI progresses faster than a new system can be brought into place. The adjustment period is likely to see hostility and opposition, especially from shortsighted people.

Based on what we're already seeing with AI art generators, there will be some who embrace new technology and others who resist, especially those who resist out of ignorance.