I really hope that lawmakers and AI companies can clear this up soon, because I think AI art could be a massive thing for gaming. In particular by generating small variances so that the world doesn't feel so copy paste.
For example, consider a map with a large office building (like in the game Control). There's so many assets needed to avoid feeling copy paste. You'll notice if the game reuses the contents of whiteboards, which isn't realistic. In real offices, we can expect every single whiteboard will likely have different contents (with the exception of blank ones). They probably will have lots in common, but they wouldn't be exactly the same. A human creating dozens of hundreds of unique whiteboards isn't a very good use of time, especially if we're talking about one of many minor assets that aren't even meant to be paid close attention to. An AI, on the other hand, could generate the many variations we'd expect to see. We can even have a human design a couple and ask the AI to make similar ones.
This isn't even all that new. We've had procedural generation (which is not AI) of stuff like height maps and trees for ages now. But we're finally able to generate entire textures (and perhaps eventually entire 3D models) very easily and while fitting into a specific theme.
Finally, for indie games, developing art can be a major challenge. There's countless programmers who want to make games and are good programmers, but they're not good artists. AI generated art could help make being a one person dev more viable. And even when the dev is an artist, it could simply save them a lot of time on what's a very time consuming part of game dev. eg, AI would be good at generating the profile pictures of characters that RPGs often show during dialogue.