More that an existing smaller studio doesn’t have to sell their soul to a publisher (or get lucky) to survive. They can more safely make a “big” game without going AAA.
My observation is that there’s a “sweet spot” for developers somewhere around the Satisfactory (Coffee Stain) size, with E33 at the upper end of that, but that limits their audience and scope. If they can cut expensive mocap rigs, a bunch of outsourced bulk art, stuff like that with specific automation, so long as they don’t tether themselves to Big Tech AI, that takes away the advantage AAAs have over them.
A few computer generated textures is the first tiny step in that direction.
So no. AI is shit at replacing artists. Especially in E33 tier games. But it’s not a bad tool to add to their bucket, so they can do more.