I didn’t play the game, so I can’t comment on how it is used in the Alters, but in my opinion AI stuff should be used to help the creative process. If AI is used to cut corners and speed up development in later stages, it will always be bad.
This kind of stories will happen again and again until they have strict rules on how it is used by the devs. Devs will always prefer the good enough AI made stuff instead of using it as a tool. It’s just too tempting to use AI for everything.
Speaking of AI, there is an upcoming neural network solution for texture compression in the works. Could be miraculous, even if only as half as effective as advertised.