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Peter Molyneux thinks generative AI is the future of games, all but guaranteeing that it won't be
(www.rockpapershotgun.com)
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I mean, if someone creates a game with all the options there and you just use AI as a replacement for a complex UI, it could kinda work. A game like scribblenauts could theorically implement an AI based stage creation option with the current tech already. The problem with that is that the AI wouldn't be able to guarantee that the stage has a proper challenge level (or even that is possible to complete it), so it would also need to implement an AI that tries to beat the level as well and then keep iterating over the two until a proper stage is found.
In short: doable, for very niche cases and probably taking a very long time to complete a prompt (possibly hours).
Does candy crush use AI or is there just a hellish algorithm that generated thousands of levels.