while it's certainly clear the company that made pal world made, separately, a very bad looking "party game" where players use GANs with jackbox style prompts (and to be clear: fuck that), I'm really not sure I believe wherever this supposed "Pal world is using AI art" rumor is coming from, for the following reasons:
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the entire game is 3d - genuinely I can't think of even a single 2d asset in it beyond the UI - and there are literally no "AI" generators capable of producing even the most rudimentary game-usable 3d models or animations right now
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If we want to assume that the designs were made by GANs, well, I'm not sure I buy that because it's actually what GANs are worst at - simple, readable and distinctive designs. Generally speaking most "convincing" GAN work relies on it being noisy and busy in a way humans are bad at detecting. That's why very heavily textured and detailed landscapes, etc, tend to be the most popular choices, and why stuff like human faces had to be trained for specifically.
TBH I'm MUCH more inclined to believe the other accusation I've seen, which is that they mishmashed/filed the serial numbers off a bunch of existing pokemon designs. THAT idea doesn't really bother me for reasons of: nintendo has a trillion bazillion dollars to spend on lawyers and I don't need to do free labour for them or defend them from imitations, legally dubious or not (reminder: they recently garnished the wages of a switch hacker for life after jailing him for years)
