She(?) is right to fear AI. It will replace all the shit artists that can't turn out high quality work. Middle-of-the-road Tumblr trash is such a broadly similar style that 5000 different artists could draw the same character on demand and produce only 4 unique pictures with the only difference being the pose.
Meanwhile artists worth their salt know they can't be replaced, that as much as AI generation can turn out something that looks good at a pass, to anyone with even the slightest critical eye for art can spot signs, and it will never be as good as something truly produced by hand. These same skilled artists also know that they don't have to go anywhere, because all the shittier artists will get washed out by the AI tide and when people realize they still need actual artists to produce content for them, there will be much less competition.
Furthermore, >"bawww creators are successful because they cater to broad audiences and I'm not making money"
You can be successful or you can be conscientious. You can't be both, especially in media. You will have to step on people in your way to reach the top and if you hesitate or slip, you'll be pulled down into them. The entire concept of prime time ratings and death slots demonstrates that you have to destroy opposition to proceed, and that hasn't changed even in a shift to streaming platforms becoming a mainstream source of media content.