Honestly, I kinda don't believe it. I once was listening to music as background noise on YouTube, and the auto-play algorithm apparently put me on a video of AI-generated music. After around 10 minutes or so, something just felt off to me, the music felt really boring and lifeless, and so I alt-tabbed and discovered it was AI. I wasn't actively listening or even paying attention and my subconscious clocked it.

I would heavily doubt the reports you receive about the popularity or success of AI-generated art. There are very influential and powerful people and institutions heavily invested in it who have a very strong incentive to manufacture evidence and just outright lie about it to keep the bubble inflated, either because they're true believers in AI, or because they want to offload their investment to retail investors before the bubble pops