I couldn't agree more! The entertainment machine that was Hollywood is falling apart. I already know several screen writers that use AI not to write a script, but bounce ideas at it to find new directions to pursue in the writing. The day will come that the majority of scripts will be AI generated.
Another thing that I foresee in the future is web 3.0 actually funding movies and television shows completely cutting out the old production companies. Things are definitely going to get interesting in the entertainment sector over the next decade!
AI or not, the screenwriters will still have a competition. If anything, AI might add another layer of competition, let's tentatively call it how to train your model ...
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The second idea is something I pondered but havent written about since most still dont buy into the idea of Hollywood consolidating and studios going south. It is a concept that many find too unbelievable.
Your experience with a screen writer seems to be what is taking place. It is changing everything.
The world is changing... The giants of yesterday will slowly begin to disappear or adapt and survive. It's going to be interesting!