I've seen good AI and bad AI, and let me tell you, when it's good it's fucking sexy to look at. It might take some time for the AI to make the really good ones, but once it learns it's capable of making some really good designs of characters and sex scenes. In every work you're gonna find some good art styles and some bad art styles, once you get your tools set to go, you're golden, especially if you are just starting out and you're not capable of making good art yourself.
Besides, it's not like AI is the actual problem here. In this site you can find a literal ocean of recycled Renpy visual novels, sometimes you'll find a polished gem, other times it's just more of the same story, same base body model with just a bit of modification to make it just barely distinguishable and story that's more cringe than Snow White. You could say that AI is the same thing as the Renpy engine, it's there to help you make your development easier, but it's not just going to hand you perfection or a good game, you gotta put your back into it and make it good enough for your target audience.
Take Chicobo's art pieces for example, he's not going out of a job anytime soon, the guy's art is incredible, far better than AI and you can see it, it has incredible quality, it has atmosphere, it has emotion, if you have the guy on your team you're golden dude. Now go to Debasing Grounds and take a look at that new portrait system it has going, you don't need to play it, just start a new game and look at the character creation portrait. Be completely honest with everyone here and tell me that you find that better than AI artwork. Of course not, you're going to tell the guy to get AI to do some placeholders until he can get a proper artist to make some portraits that are better. Way i see it is people shit on AI because they know they now have a quality standard now set in stone, you either match the same level of quality an AI is capable of doing or go back to your art courses until you can get to SigmaX, Chicobo or Shexyo's level of quality. I say don't worry too much about using AI on your project Dev, just make sure you train it to work well enough to get people's boats float, after your project reaches a good enough level of attention and revenue, consider investing in an good artist to make some really good pieces. The three artists i mentioned here are incredibly good, if you can afford them. Chin up high and head on the game Dev, every criticism contributes to your experience on the field