Yes, the cover art and banner are AI-generated. We know it’s a hot topic, and we’re genuinely curious: what part of it doesn’t sit right with you? We're likely going to replace them soon with something more "handmade" in a next version anyway.
Game doesn't use any AI art.
We used AI generated cover and banner art in the early access half a year ago, but changed all those to handmade art very fast when we realized what people think about AI (Devlog post). It has been a learning process and we surely learned to not use AI generated art.