How do human artists compete with AI-gen images?

Yes, we're building a dystopia where AIs do the work humans enjoy, and humans get to hold on to drudgery. What's not to like?

Your point? It's an analogical problem.

I love writing but even there I have to work doubly hard to make sure I'm doing something valuable.

My point is that the space within which human creators can distinguish themselves is diminishing rapidly.