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I do not think that AI will be a threat to art or artists, but more of a new toolset that a lot of artists do not know and that way it looks like a threat. The guy who won that "art prize" (300 dollars, seriously?) was right that he didn't break any rules, but I bet he can't paint (exactly) what his AI generated/rendered. He printed it, which makes it cheap and lazy IMHO. It doesn't come close to any skillset or mastery of materials, let alone the dozens of other skills that are needed to create something that rises above any hobbyist's level.
AI is just sets of tools. Getting skilled at using AI painting systems could well be a skill that most of us haven't mastered or will never master.