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There is already 3D model AI generation, though it still needs some work. But as they say "2 more papers down the line..."

https://www.youtube.com/watch?v=CqIXRB_Uw5s

https://mixed-news.com/en/nvidias-latest-open-source-ai-gene...

I agree, this far more profound than CGI. Ultimately I think this tech will be seen as allowing the exploration of all possible worlds. When the AI can generate convincing representations of anything we can think of and things we could never dream of - then what we are really looking at is a kind of inter-dimensional craft that can take us between realities.

I think with endless escapism being a reality, people will get bored and focus on the real world again.

We will have the best of both worlds ;)

It's quite literally Computer Generated Imagery as what we traditionally think of as CGI actually requires an artist.