Since there's a lot of people talking about AI CG, I'd like to point some things out.
First, the knees are very loosely shaded while things that would catch your attention have more detail. Pretty typical of normal art.
Second, yes, the hands look a bit weird but they're supposed to squish in. It could go either way on that.
Third, you can tell the animation is done on layers, meaning the art had to be able to be disassembled and reassembled to get that effect. It's not just an image being warped, it's individual pieces. Look at how the skirt moves, and the guy's elbow over the leg, or the hair over her face. Not usually possible with AI without a LOT of work.
My best guess is that it isn't purely AI, it's AI enhanced. Does AI enhanced art count as AI CG? I don't think so, because most 2D art nowadays has some kind of AI tool helping. These are just things I noticed.