Dam... AI is super good... waiting on artists almost seems unnecessary at this point...
While I am someone that thinks AI is really cool, the truth is that AI is still a long way from replacing artists.
For one, almost all of these are just an AI filters of character sprites that are already in in the game. So in this case you would still need have the artist create the art that the AI is going to remix, at which point to might as well use the artist's art.
And a generic AI art model wouldn't be able to create original art for this game. You can't tell the AI to create an art piece of "Rowan fucking Cla'min in the ass in the back of her caravan." (note that I am simplifying prompt generation quite a bit) It doesn't know what Rowan and Cla'min look like, or what Cla'min's caravan looks like for that matter. You could tell it to give you art of "a human man fucking a female goblin in ass in the back of an enclosed wagon" but that would give you a generic man fucking a generic goblin in a generic wagon. In order to make it work for a specific project with original characters your would have to train the model from scratch to make the sort of art you want. Which would involve feeding tons of artworks of each character, location, and activity that you want it to be able to produce. Which would be prohibitively expensive on the scale of a game like this.
Also if you look past faces and boobs, AI still has a tendency to put out weird artifacts such as messed up hands or clothes that don't make logical sense. It's getting better, but AI training has recently ran into a problem where there is now so much AI art out there, that they are finding it difficult to mass feed it training art that isn't full of AI art, which only reinforces the AI artifacts and tells. It is a sort of AI art inbreeding.
Then even if they could use AI to replace the artists on this project you would inherently lose a large chunk of your audience. There are a lot of people that have moral qualms about the use of AI art particularly in commercial projects. There have been projects that have tried to rely on AI art and caught a lot of backlash for it.
