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Valve appear to be not willing to publish games with AI generated content
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won't last, before long all games will have some elements of ai generated content
Until the first commercial title gets sued and then publishers won't touch any game with AI generated content
Not likely.
Studios could and probably will train their own AI models to avoid legal trouble and achieve custom results.
Beyond AI generated textures, I think it's just a matter of time before AI generated maps, NPCs, game mechanics, etc. become commonplace.
Though, I suspect there will be actual companies that train completely on data they have legally purchased that then sell it legally to other companies. They greyzone of not knowing if or how much art was taken without permission is the issue at hand.