The thing is though, we "all" are using AI in the work place to help us with coding. It's a thing. It's the new Stack Overflow. So why shouldn't someone use it in an interview? Of course the main thing is whether they deceptively use it or openly use it.

If an applicant is very open about how they use AI in the interview process with full disclosure, and do very good work, maybe they are a good hire? If I asked a question and someone wrote a very good prompt, got results, took the results and cleaned it up and confirmed it wasn't hallucinating, maybe they are a person I want to hire?

I think in a lot of ways the new technical interview would revolve around showing the applicant a simulated AI prompt, and a response that included various mistakes and hallucinations. Then let the applicant tell me what's wrong with the code, and how the prompt could be improved or a followup prompt could be used to fix the issues.

Getting AI to do what you want is a skill, and one you want in an applicant. Knowing when AI is wrong and being able to correct it is also something you want in an applicant.