I used to be an illustrator and I know from speaking to my former colleagues that they have, in fact, lost work to AI image generation services. Illustration is seen as a cost center by anyone higher than front line art directors and taste normally stops at that level as well. I think this will eventually end up with a bimodal distribution of undifferentiated AI slop and those who use high-quality human illustration to signal a commitment to taste, design, or maybe even luxury, but the economic consequences of that shift are already in motion.