That's pretty much how I think I'll make my (point and click game) background images, too. I take photos of the city the game is set in, then I'm experimenting with using AI to give them more of a video game-ish look, like making them look like pixel art or drawings or something. For character portraits and whanot I'm using AI 100%, but I have a long-term goal/dream of using Kickstarter or something to raise money to commission human artists when the game is out.
Also, as Austin McConnell pointed out in his vid, in many cases you don't have a choice between human or AI art --I can't afford to hire human artists in the first place, so it's not as if human artists are losing work because of me. And as I said, AI is part of what makes lots of us indie and hobbyist devs these days able to make games in the first place.