1. You mean all other characters besides Amelia? Besides in some special scenes, I basically have to choose one or the other between swimsuit or naked. It would double the amount of required images otherwise and take too much time.
2. If I didn't use AI, the game wouldn't exist. I don't have tens of thousands of dollars to hire an artist, and if I were to draw it myself it would just look worse while taking much longer. I already have some time constraints that might prevent this game reaching completion; I wouldn't have gotten that far with planning at the very start if AI tools were not available. Other compromises would've been there being many fewer images, though still with the same problems just listed. There are well over 1000 images in the game right now, it would probably have to be reduced to 100 or less and the game would not be visually as interesting.
There is an option in-game to turn off the images for those who might be bothered by AI and would rather try a text adventure.