It's being used in the pre-concept art phase, which is when you grab literally anything to do a very generic “here’s my idea” demonstration. It can be a screenshot from a game you recently played, a cinema poster, a photo of your cat, something you found on DeviantArt or Pinterest, a doodle you made with a pencil, cloth fragment, an interesting rock you found on a stroll, simple render, anything.

But, getting all these takes a lot of time - you have something in your head and now you need to find an image or an item that will more or less represent it. So you spend hours on Google Images trying to refine your search, only so that you can then post it on the ideas board, and for it to be replaced completely by actual concept art.

This is where they’re utilising GenAI. And they’re not even replacing this process entirely, they’re using GenAI on top of everything else - basically, using all the tools available to speed up the process.

And, yes, sure, "it at least informs the concept art", but that's kind of the point of that entire phase of development. Concept art doesn't grow in a void, the designers of the game are not the concept artists.