Yeah its permeated way more than AAA.
But trying to convince game devs to not use AI is about as likely to succeed as convincing them to stop using their IDEs.
What will actually happen is everyone is going to just stop announcing they are using it, and every month that goes by it'll get harder and harder to tell.
I agree, people tend to use it very poorly.
That largely stems from it still being a fairly new tool and, to be honest, quite unintuitive how to use it well.
Theres a lot of fundamentally bad ways to use AI that feel natural due to the way an LLM creates the illusion of thinking.
For example, one of the first things you learn in prompt engineering is dont correct the mistakes of an llm, this is unintuitive but it inherently reinforces the llm to make more mistakes.
Instead you have to go backwards in the history and edit your prior statement to "pre" correct it before it made the mistake, and regenerate.
Its a subtle thing but makes a huge difference in it producing stupid useless garbage vs actually not half bad output.
Pretty much every "trick" to it is unintuitive like this, so thats why so much of what you see AI producing from people in the industry is garbage, Id estimate like 95%+ of people just straight up are using it very wrong, becoming frustrated, and producing sloppy tier output.
Which is a big waste of resources atm. More work has to go into education on how to use this stuff efficiently so its not wasting resources and slop levels go down.