As it stands, I don't like generative AI. Even if you don't take into account the ethical issues or the aesthetic concerns, it simply feels soulless.
I think AI could be used as an assistive tool to reduce people's workload on tedious tasks, but currently, people use gen AI to replace other people, which doesn't sit well with me. It's especially egregious when it comes from big companies wanting to cut corners. You've got the budget to work on a big title, hire some human artists instead of using gen AI in your assets!
I also don't think indie devs should resort to gen AI when there are resources out there that people can use for free in exchange for being listed in the credits, like stock images for backgrounds or royalty-free music. For example, Hatoful Boyfriend used only royalty-free music for its soundtrack and it didn't distract from what I was playing.
That being said, I don't like how some people nowadays are trigger-happy in regards to calling something AI-generated. I understand their concern, but the methods used to tell AI art or AI writing apart aren't foolproof, and could lead to people being witch hunted for happening to have an art style or a writing style that gen AI likes to replicate. This is why storefront disclaimers are invaluable, though unfortunately it doesn't stop people from potentially lying about using AI in their games.