How these are in any way excluding each other? And NFTs are fungible tokens while AI has nothing to do with cryptocurrencies.

And NFT isn't "form of art" more then museums are form of art. NFT is platform for tokenization, and those tokens can be connected to anything. Pictures are just most low effort way to get and easier to market. And kicker is that you don't get to own the art, and in most cases it can be stolen in the first place, or made by AI. you just own the nft connected to the picture.