Nah you're not. The general assumption was that AI would speed up the development of these games a bit, but clearly it's not the case. I'm not going to pretend that I understand the whole process, but I'd like to know what's the actual trade off for replacing human made art then?
Knowing the process well here is my take on the situation with AI art.
Pros:
1. A skilled artist CAN put out art faster by having AI detail simpler drawings and then refining the details in those drawings. You can potentially do this multiple times, and it can really save you time on the more boring aspects of drawing (IMO) such as shading, adding wrinkles or worn effects to clothing, highlights, etc. Doing it this way requires skill with both manual digital drawing and working AI prompts, so this isn't gonna be very common.
2. A skilled writer or game designer who can't draw very well can potentially create good work on his/her own.
Cons:
1. Any average or low skill person can create content that might have artwork that is appealing, making it more difficult to tell which games are crap.
2. Enables lazy devs to do sloppy work with the same problems as 1
3. Enables undedicated devs to create enough material to intrigue people and then just abandon it. This was already a problem, but AI seems to be causing even more abandoned games as far as I can tell. I have no stats to back that up, so it may be biased by the types of games I play.
Disclaimer: I am not saying anything about any specific games, when I want to do that, I write reviews.