This has similar energy to the writer’s strike - save money by removing the first layer of human effort. For some things (like the backing music in a commercial) this is sufficient, and for others you can have AI generate the base and then have a human “punch it up” with their vocals or by performing it on live instruments.
I don’t think we risk losing music production in general, but I do think there’s a legitimate concern that many many smaller, less publicly visible music jobs will be lost.