All the AI-generated UIs I've seen have been very derivative, certainly not eliminating any of the disadvantages of typical GUI interfaces.
Realistically, the whole "overlapping windows" GUI model, and everything that derives from that, was a metaphor geared towards people who'd never seen a computer before. It fit the increasing consumer focus of computing interfaces. It's no wonder that technical people often prefer TUIs.
Maybe AI will bring real advancements in GUIs, but someone's still going to have to make it happen.