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I can't speak for the jam administrators, but I think that most people don't make that generated/assisted distinction. Also, even if it is technically allowed, using AI content tends to put some people off (esp. in these indie creator scenes), so it may be inadvisable. There are many sources of free, human-made game assets (e.g., OpenGameArt, kenney.nl) if you aren't confident with your 2D art skills.