I'll always prefer human-made art over AI-generated because human art has stories behind them. Behind a human-made art piece is someone who gave their effort to it, whether it be a long time veteran or someone who's still learning the ropes. As someone myself who just became a pixel artist last year, I know very well the journey it took to get me here. So when it comes to games, I'll always appreciate devs who either make their own art or procure an artist - especially in this time when AI-generated art is becoming prevalent, human-made art feels much more special compared to when AI generation was non-existent.
However, you do have a valid point in that AI allows you to produce highly detailed art pieces, and the convenience it offers with just a few word prompts. I've used AI myself to produce references when I'm having a hard time visualizing scenes. Though another issue with AI currently is the 'ethical' aspects of it which most people don't agree with, but that's another topic.