"Palworld's launch was also heavily steeped in controversy as the developers, Pocketpair, were accused of plagiarizing character models from Pokémon and using AI-generated images in the development process."
Of the two lines of gripes, the former is a matter solely for NINTENDO and their lawyers. With each day that goes on without action the significance of outsider whines goes away. Until that changes, the "controversy" is meaningless. Time to move on.
On the matter of software generated imagery/assets/code? Grow up, chidren!
The tech is real, it works, it's here to stay. No amount of pearl clutching posturing is changing that. The djinn is out of the bottle and it ain't going back in. Game development is too hard, too long, too expensive, for studios to give up a whole class to tools that reduce all three enough to make a difference between failure and success.
All the griping can do is drive studios to hide their use of generative tools, because if a studio can assemble a good successful AAA game in three years with them while their competitor takes 5 years without, guess which studio has a better chance of surviving the post-pandemic gaming correction? Time to give it a rest.