Maybe a bit of both, caz the real question is if your dog passed away, and you pay an artist to draw your dog for a memorial, but they just generate it with AI. Will it still carry the same mesaage, or feel fake?
My take on it is that maybe in a few years they'll be indistinguishable. But as of now, I'd wager that you'd probably feel that the picture has no love in it. And as I said above I can't point it out why you'd feel that way, just intuition.