AI is considered a potential future growth engine, as it cuts costs in art production, where the bulk of game production costs lie. Game executives are latching onto it hard because it's arguably one of the few straightforward ways to keep growing their publicly-traded companies and their own stock earnings. But technologists already know how this will end.
Other games industry leaders are betting on collapse and renewal to simpler business models, like self-funded value-first games. Also, many bet on less cashflow-intensive game production, including lower salaries (there is much to be said about that).
Looking at industry reports and business circle murmurs, this is the current state of gaming. Some consider it optimistic, and others (especially the business types without much creative talent) - dire. But it does seem to be the objective situation.
[0] VC investment has been down by more than 10x over the last two years, and many big Western game companies have lost investors' money in the previous five years. See Matthew Ball's report, which I linked in my parent comment, for more info.
[1] The games industry has seen more than 10% sustained attrition over the last 5 years, and about 50% of employees hope to leave their employer within a year: https://www.skillsearch.com/news/item/games---interactive-sa...
