The AI models are indeed improving in leaps and bounds in a matter of weeks! I used AI to optimize my Blitz Basic code for Hyper Runner, specifically by converting hot-path logic from BASIC to Assembler and I saw a lot of performance improvements, to the point where Hyper Runner could run on a stock 1200.
I think going with the C approach is a good idea as the models deal better with higher level languages, while on the other hand C is also good for the low level operations (register access etc) required.
I will certainly adopt this approach in future Amiga projects.
My current project is for Neo Geo, using NgDevKit and a setup very similar to the above, using Python and Powershell for data processing tools etc.