@pluralistic says it better than I ever could.

"Studio bosses didn’t think that AI scriptwriters would produce the next Citizen Kane. Instead, they were betting that once an AI could produce a screenplay that wasn’t completely unwatchable, the financial markets would put pressure on every studio to switch to a slurry of satisficing crap, and that we, the obedient “consumers,” would shrug and accept it."

https://doctorow.medium.com/how-the-writers-guild-sunk-ais-ship-236575979d5c