The contemporary art world is conservatively estimated to be a $65 billion USD market that employs millions of human artists, sellers, and collectors globally. Recent attention paid to AI-made art in prestigious galleries, museums, and popular media has provoked debate around how these statistics will change. Unanswered questions fuel growing anxieties. Are AI-made and human-made art evaluated in the same ways? How will growing exposure to AI-made art impact evaluations of human creativity? Our research uses a psychological lens to explore these questions in the realm of visual art. We find that people devalue art labeled as AI-made across a variety of dimensions, even when they report it is indistinguishable from human-made art, and even when they believe it was produced collaboratively with a human. We also find that comparing images labeled as human-made to images labeled as AI-made increases perceptions of human creativity, an effect that can be leveraged to increase the value of human effort. Results are robust across six experiments (N = 2965) using a range of human-made and AI-made stimuli and incorporating representative samples of the US population. Finally, we highlight conditions that strengthen effects as well as dimensions where AI-devaluation effects are more pronounced.