Procedural generation of content in games is by no means a new thing. Even if the end state isn't completely procedurally generated, odds are a version of the asset was initially and a human touched it up as necessary. When you're talking about large asset sets (open world and/or large maps, tons of textures, lots of weapons, etc) odds are they weren't all 100% hand made. Could you imagine making the topology map and placing things like trees in something like RDR2?
That's not to say all this automation is necessary a good thing. It almost feels like we're slowly chugging through a second industrial revolution, but this time for white collar workers. I know that I tell myself that I would rather spend my time solving problems vs doing "menial" work and have written a ton of automation to remove menial work from my job. I do wonder if problem solving will become at least somewhat menial in the future.
Not sure, but I would suspect that AI output would likely be very similar to procedural generation output in that it will need some massaging before it can be used as a final asset.