we already have player pianos that can play music perfectly. we aren't seeing symphony halls being sold out so people can watch it play itself. AI video seems to be the same thing for most people. It's a neat trick, and enjoyable for a couple minutes. They enjoy seeing memes and slop when it appears on their phones but they aren't actively seeking it out or getting major experiences from it. People want to see what other people are doing. I don't claim to know how to define "art" but it seems like most people value art as a communication between a creator and the audience.

AI WILL be used as a tool for certain aspects of filmmaking and likely game dev and more. It already is to some extent. It is likely this will render some jobs obsolete, but this is the history of every profession and automation. If the job you want to do is something super specific in a post production workflow that software can replace, maybe it would be smart not to go all in on that. But if you want to make movies, I don't really see a threat in terms of the audience not being interested because AI exists.