I think this question is really interesting as a similar question was asked with the invention of photography. A lot of art at the time was based on realism and just capturing the image/portrait and with photography being developed there were questions on whether artists would become unnecessary (especially realist artists). Instead, art switched focus and became more about capturing human emotion and new forms of art became popular - not that these other forms didn't already exist but more emerged and photography itself became a form of capturing art, and this then led to film.
I don't think AI will ever replace current art as I think humans will ultimately strive for connection to other human emotions that can be conveyed through art. I do think that AI might be involved in art as a tool but not as the main creator. I think people will always value the "deeper meaning" conveyed by art and the time spent dedicated to a piece. I don't think these can be replaced by AI yet so it may be a while until AI comes close to actually producing art.
