Prototyping games is getting so much better, this will really help indies game studies quite a bit.
Will those AI generated assets replace hand crafted ones? Heck no!
Have you ever tried doing AI art?
What gets posted on social media are the few successful experiments. Most AI generated stuff is absolute crap. Getting anything useful out of it requires lot's of trial an error and magical incantations.
Now yes, you can quickly make generic background #20233 with it or simply something weird that would fit into some bad dream. If you need something specific and coherent though? Yeah, this will be very hard.
Here is how to make concept art with stable-diffusion: https://www.youtube.com/watch?v=rS2kNvbIL5Q
Look how many iteration that requires. How it requires finding the proper real word assets for img2img techniques. How is still requires some serious Photoshop skill to put everything together.
AI helps us build more higher level tools for creating art but the idea that it is anywhere close to creating art itself is silly. We have not made any progress in creating general artificial intelligence at all.
The main progress we see is that AI-tech is that it is becoming available for the masses, which is awesome.