Hi Stag
The problem with AI generated content is that it is low effort content and does not showcase your ability nor improve your ability through process learning, that is because AI generated content is not your work, even if it is a model trained on your work. So, it actually misses the point of what the jam is all about, which is improving and showcasing. It is the same reason that AI generated content (prompt based) does not garner copyright attribution regardless of the source material used in its data sets. At best you might claim it created a derivative work based on the prompt itself, but the argument is very poor.
Non-prompt based AI is mostly QOL stuff, for example smoothing algo, or animation automation (you specify certain frames and in fills in the gaps), and have been long in use for yearas prior to this every becoming a thing.
You don't need artist consent to train an AI off of their work as the AI does not do anything to breach copyright. However, if the AI produces something far too similar to their work that in and of itself could constitute a breach, but this doesn't preclude all AI generated assets from said data training. So, there is nothing invalid from a creator using prompt based AI.
However, prompt based AI is something I believe does not follow the spirit of the jam. Hence my wish/suggestion that all prompt based AI was banned.