I think it started with the popularity of DJ's. Years ago I used to do a lot of Cocktail Hr. piano at a Wedding Venue. The baby grand was near the bar so people would pass me constantly.
This happened more than once. Someone would glance at the inside of the piano and see hammers moving and look at me and say "hey, your really playing "
Pit orchestras for shows have been fighting for years against using synths.
Your right, for situations where a live musician isn't needed AI will fill in. Like everything it all about $$$