I've spent decades making and overseeing the creation of game art. Concept artists have been photo-bashing (stealing other artists' art and mixing it into their own) for as long as I can remember. This is worse than what AI does.
I spent a lot of time refining processes toward optimal efficiency. I got so good at it that it became boring. My teams and I never worked more than eight hours a day (unless I wanted to), never "crunched," and were always on time and on budget.
If a game production isn't using AI, it's malpractice and an abuse of investor funding. Efficiency gives you more time for creativity and sustainability. Wasting effort on labor for the sake of "artistic integrity" will help the game fail and get your team laid off.
I hate to be the one to tell you this.
All game studios are using AI.
They just aren't telling you.