I don't know what you're talking about, but I'm not talking about luxury brands, I'm talking about the fact that regular people enjoy buying handmade niche products that are made by other people.
Anyway I know people who work in fashion, pretty much all luxury brands are good made by hand, you just don't know it because it's happening in slave labor, sweat shops and the like.
The analogy for music would be a lot of bands who don't write their own music and can't sing or play their instruments (assuming they even have instruments), relying on technology or other people for these things. In essence, an existing trend exacerbated.
I know you said it's exacerbated, but his has been the case for the last 100 years, Elvis had song writers, all the K-Pop and J-pop is already this, it's generated or music written by third-parties. We might end up with MOAR MUSIC!, but I don't know, who cares?
Anyway, generated music is besides the point, for something like AI music to be useful, needs a market. There is already a market for music generated by computers and AI. There has been for a long time. I'm talking about live music, young people going to see people play music, rap, do performance art etc. This is what young people like to do, they're social animals. It's also what makes old people often follow suit, because it's popular with younger people.
I was just walking through my neighborhood ten minutes ago and there was a guy DJing and a bunch of young people hanging out in a bar listening, that guy could easily be replaced already with a spotify playlist, but why isn't he? I'd argue there are better mixes and playlists already in existence, but "optimization" isn't necessarily what life is about, I think it's hard for computer people to understand this.
Before there was a music industry, there was people singing and dancing around campfires, that spirit is not going away so long as there are people. That's what music is really about, "the industry" on top of it is a bit of fun, but we can live with or without it.