With your defending AI, with no less than using medical "AI" applications no less, you lose track of the important thing: how people react to AI "art".
It does not matter, if it is ethical or not. It does not matter if a big studio used it to recreate the voice of a deceased actor with constent. Or that some indie developers use it in their games. This is all beside the point.
Players do not like it. You cannot use AI assets as an advertiseable feature of a game. So displaying the use of AI will deter a lot of players. Do that in a nieche that already does not have all that many players, and you have barely anyone left. Add to that the barrier of installing a casual game that should have been a browser game and what you get is what you have.