AI is certianly interesting. I don't think we need to worry about the quality of games overall, though those that work in various parts of the industry will either have to adapt to utilize these tools, or get left behind, just like any other disruptivce technology. Over the past decade, we've seen such a huge growth in the independent developer space but there still are relatively few great indy games and still lots of great AAA games. I think if anything, much like how the access to platforms like steam and gog drove the increase in the indy space, AI will continue it. Right now, you a lot fo decisions for indys are driven by cost.
Take graphics for example. It's extremely expensive to hire a graphic artist for even basic graphics. One of the biggest impedements for making mods for the Infinity Engine games was that you pretty much had to just reuse existing maps. Creating the art for a new map was damn near impossible and that's not even going into the work to make it more than just an image. But what if you could go into an AI generator, tell it you're designing a new map for IE and guide it through what you're looking to create? Still work to be done, but a huge impedement has now been removed.