Like all tools there are right and wrong ways to use it.
A company using AI to not pay for artists and animators, very bad
Using AI for a throw away character image for your online D&D however is a reasonable use of it.
Both of these situations are okay, and wanting to cut costs is a perfectly valid reason to use it. There's nothing inherently wrong with not using humans when you can use a machine.
The real issue might be with legality of training these models - which IMO is no different than human learning to draw in certain artist style for example, but if it'll be decided that it's illegal, there will be clean models.