It seems to be despised, but I don't know if that's just because you don't see "Yay, AI generated art!" threads/posts?
There's so many levels of it though. AI's that have been desperately trying to learn to draw like artists that disappeared off the face of the planet such as Jin (MTSP, Tachibana san, etc.) is somewhat admirable. But others that just dish out generic, uncanny valley, and/or badly drawn stuff is another matter..