In fact, I recently started a one-man-show business I'm doing as a bit of an experiment in my city.
Every single web agency here builds WordPress sites. Really old, mostly ugly, WordPress sites.
So I've built out a next.js-powered CRM that's faster, more secure, easier to use, etc.
Now I'm in the starting stages of rebuilding local sites for free just to grab the case studies.
I'm doing this 1.) as a bit of an experiment and 2.) because it feels like the web agencies here are ripe for disruption (and no one else seems to even mention or touch AI)
With Claude + Codex (and a 15-year background in WordPress) I've jumped from taking around a month to build out a custom site to less than a day.
The interesting/tougher part will be product/market fit and building those first few paying clients.
So to answer your question? It definitely looks like it. I'm sure there are plenty out there who are adapting but they seem to be the exception in what I've seen.
Using AI powered prototypes to sell clients on new features has gone really well for us. Many of our clients have presold themselves on adding AI features of some kind, which is nice because it generally means they will need support for these features going forwards.
Why? Because I don't know the basis, I can't decide what AI generated suggestion is good and what bad, what will work, and what won't work. Sometimes AI suggests things that are just not ethical. If I had a good basis, like in software development, I would have better results.
Yes, for sure, work will drop and it will affect some people, but web agencies will stay. I will give you another example. I have all the tools at home to make my own desk, but at the end of the day, I go to IKEA and buy a new from there ;) . I believe that the number of people needed to do a job will decrease, and the demanded quality will increase, because manual labor is more expensive. Because it is more expensive, it make sense clients to demand more for what they pay.
Time will show :)