Answering for myself, not Morrus, I think you’re missing another option.
I was missing lots of options. Just trying to point out that this is an emotional issue. And it is a complex issue. It deserves to be discussed in a nuanced manner and not an emotional one.
I think that applies to AI use. The problem is, it is very easy to not use AI well, and the most visible examples are of people not using it well. It's possible, in principle, that the technology is fundamentally unable to do art/writing/layout well, although I think we've already seen counterexamples in some of those domains.
Yes, it's very easy to use AI poorly. But, it's also possible to use it for RPGs in a useful and productive manner. Last week I was putting some finishing touches on a module I've been writing and asked Gemini what it could do to help me proof and edit it. It came back with a multi-step process using multiple Google AI tools with specific steps, prompts and things to look out for.
It included some simple grammar errors like it's vs its my editor missed. But it also caught (correctly) a misnamed NPC. i.e. one of the intro NPCs who gives the party a job is named Mr. Johnson, but it cited a paragraph and sentence much later in the story where I referred to the NPC as Mr. Smith.
When prompted to check for structure etc, it came up with a suggestion that one of the plot/location points in my adventure only had one clue leading to it and the party might miss that clue. It was right, I had meant that the path between points 10 and 11 where self-evident and effectively the same, but that wasn't clear in my adventure.
We all have seen adventures from the big publishers miss things like that. Yet in this specific case it made some trivial (but good) suggestions and even what I consider a fairly significant one.
And if I keep that plot improvement, do I list on DriveThru that I used AI to help? I probably should right, but then some segment of the market is closed to me even though I suspect many of those people who would just have AI content filtered out automatically would place me in the same group as those that the entire adventure is written by AI with just cut and paste into a document. Or, do I remove that fix from my module, and publish it with a known error, all becaue AI informed me of the flaw?
Unfortunately for the tech companies, only about 5% of the Enterprise projects using genAI return even today's more modest value expectations, much less the hundredfold greater amount needed to support the expenditures. While everyone in the business world is hyping AI, companies are soon going to be finding it doesn't save them anything - either the results are so full of errors that the damage business, or they spend just as much time correcting AI work as they'd do doing things with humans.
Some businesses will certainly find it doesn't save them anything. But a lot of others, will find that AI is profitable for them. And AI is getting better on an almost weekly basis. I've seen things in the aerospace and defense industry that just were not possible without the current generation of machine learning and what we now call AI. AI is doing positive things in the financial and automotive industries too. And, nefarious actors are using it profitably as well. There are simple too many valuable products that hold a lot of value because of those AI capabilities. For all AI use to stop.
In the end, it isn't bad PR that's going to kill it. That it doesn't do enough to justify its cost will kill it.
Depends upon what "it" is. If you mean AI in the RPG industry and possible even free LLMs and Image gens, maybe. If you mean it as in all AI technologies, then no. There's already evidence of too many positive value use cases.