Maybe I was not clear with my tone, since I only talked about the bad. There can be upsides.

It is a lot like procedural generation. Some games started replacing handcrafted maps with procedural ones…

Some of the magic is lost in a handcrafted map versus a procedural one. Sometimes it work though, like an initially indie exploration game like Minecraft. And at least so far, level designers are not out of a job for it.

AI cannot yet do emotional story telling, so in a game like Skyrim you may see AI voices for background NPCs, and manually recorded dialogue for characters in main questlines.

The automation of the industrial revolution destroyed the jobs of tailors, shoemakers, and other skilled craftsmen and artisans and replaced them with less skilled low wage factory workers.

The real tragedy though here is automation does not replace the soul that is put into handcrafted work. Before the industrial revolution, everywhere in the world people dressed dramatically differently. Regional clothing was replaced by cheap shirts made in a factory on a different side of the planet.

AI may not repeat history, but it may rhyme.