It's basically like GenAI, but running on protein substrate instead of silicon one.
And even in the digital realm, artists already spent the last decade+ competing with equivalent "factory art", too. Advertising stands on art, and most of that isn't commissioned, it's rented or bought for cheap from stock art providers, and a lot of supply there comes from people and organizations who specialize in producing art for them. The OG slop art, before AI.
EDIT: there's some irony here, in that people like to talk about how GenAI might (or might already be) start putting artists out of work. But I haven't seen anyone mention that the AI has already put slop creators out of work.