Not sure about the stated principal, but I do think it follows the policy nicely. Yes, you can upload your AI generated music, but it will be tagged as such, and you cannot profit from it.
The issue i have with it will depend heavily on implementation, i can see cases where songs that i would consider "produced and written" by people don't qualify for royalties under Tidal's guidelines. (I intentionally left out the "performed" part, since digital music production is way past the point where this was an easy and/or meaningful distinction)