The thing is, and this applies to any other human made vs computer made thing: there will always be people who cannot or don't care to discern between quality and "whatever" (aka "good enough", but where "good" is a very low bar).
The people who would be satisfied with AI generated music are people who would not have paid for human made music in the first place.
You as a good musician will never lose a sale to an AI music source, because that buyer wouldn't have bought your music in the first place.
Now if you make your living providing easy listening background music, then you will eventually be replaced.
Not even that, I think. Even background music has more purpose than AI generated one. But you are right ... some people may have a low threshold with being satisfied and hear this kind of music.
The people who would be satisfied with AI generated music are people who would not have paid for human made music in the first place.
You as a good musician will never lose a sale to an AI music source, because that buyer wouldn't have bought your music in the first place.
Now if you make your living providing easy listening background music, then you will eventually be replaced.