While AI may be able to make something 'good', at least at a glance, I doubt it'll ever make anything that's a true test-of-time masterpiece. And the reason I'm sure of that is, put simply, because of the underlying way it works.
Generative AI makes things by looking at trends. It considers what the most likely thing is in its database that fits the conditions you've given it and goes from there. But it's only able to understand that things go together, not why things go together. As a result, it lacks a 'creative spark', I suppose is how I'd put it. With no understanding, it can't recreate what made those things it sees all the time so popular, and as a result will never create something as enduring as those things. It's like a film director who sees that a popular movie came out and tries to make one like it, but because they don't understand the movie they're imitating, what they produce is a Pixar mockbuster or a 'Meet the Spartans'-type 'parody'. It might be amusing to make fun of in the moment, but as soon as that moment is gone, so is the movie.
And the more interlocking parts you introduce, the more likely it is that the AI will lose track of things and the flaws will become more and more obvious. Animated AI images / AI videos pretty clearly look much worse than still images, and even with the ability to pull code and assets together, I doubt that it'll ever produce a game that's even playable, let alone an enduring masterpiece. Hell, I doubt it'll even manage to make a hilarious trainwreck like Sonic 06, a game that was made badly by people who, on some level, actually knew how to make something good of their own, but didn't have the time or budget to make it happen. But the creative process is clearly visible and clearly more than just 'let's do this popular thing but worse', giving it more artistic value despite its poor quality than any game made by AI.
So, yeah, I feel pretty confident that for all the people touting AI as "the future of art", or at least the future of creative industry, it'll never have a true masterpiece to its name to make that argument more than just empty hype.
