Writing (on an alt, for obvious reasons) as someone who does write erotica/kink for money (though like someone mentioned upthread, not as my primary source of income), this doesn't have me particularly worried.
It does remind me of a time me and a few other writers/artists hucked a bunch of our stuff into NovelAI when the generative AI craze was first taking out and having a good laugh about the results.
As someone mentioned, an awful lot of what's out there is bad, and easy access to AI-generated slop is going to make that proportion marginally higher than it already is. But people who are willing to pay for specific and tailored stories were already going to be a more picky bunch to begin with, and they're going to be extra disinclined to read stories that "spoil the mood" with implausible anatomy.
I certainly haven't noticed any impact to my business, but in fairness I've never been operating at demand level due to health reasons so it's possible that the demand curve has ah, softened.