IMO the only problem with it is calling it “Art”. Stock photos are also slop, except man-made. That, or the soulless corporate-style illustrations in PowerPoints are the sort of thing it replaces well.
Not the “I poured my feelings onto a canvas/film” actual art. AI images are in my opinion a tool just as valid as the next - just a tool, not art.
That’s the problem then, they should have hired some cloud experts if they’re selling a cloud-first service as a “game”.