My wife is a novelist who widely participates in fiction writing communities, and a lot of competitions have had to stop taking submissions entirely due to AI work flooding all the submissions. There's been drama on and off recently with AI generated covers, too. Some waves have been made with people winning contests with AI generated short stories. Agents are absolutely inundated with AI queries, and it's only going to get worse as the technology gets better.
It's actually really scary for writers right now. You just have to look at the huge amount of AI generated attempts and think "what do we do when the writing gets really good? What do we do when most novels are mostly AI generated?"
People have spent decades working their ass off to get good and try to get their work sold, and they come out the end of this tunnel right into an era telling them that they're just about to be obsolete.