Heh, the games currently using AI art where already games that where going to be crap anyway. For now. If the group making the game can't manage to secure a good artist or the fund to hire one, it's very likely that not much effort was put into the rest of the game. Just look on dlsite at all the games with art that look like it has been made by a grade schooler and make you wonder how anyone can buy it. Or some studios that pump out low effort games really fast with attractive preview images but nothing much once you start playing. These are the kinds of games that are going to use the most AI generated art. For these games, it's an improvement. For the customers, it make sorting the potential good games at first glance harder (unless you filter the tag, of course). There is also the fact that many aspiring devs that where hesitating until now because they didn't have a way to get good art are trying with it now.
On the other end, once the tech get more advanced, it's going to be used by most games, but we are currently quite far from it.
For now, competent devs will see that everyone hate it and stay away from it, new and low effort devs will try their chances with it, and scammers will use it while trying to persuade you that they don't. Anyway, on the current market, it's a massive red flag that you should stay away from.