I would bet money it will lead to more crappy games, both in absolute and relative numbers.AI is going to have a massive impact on game development. IMHO
We already have AI asset generation. We have basic non programming language scripting languages added to engines like Unreal. I have no doubt companies like Epic are already toying with AI powered scripting. I bet we are 1-2 Unreal engine versions away from natural language scripting. Its not hard to imagine a ChatGPT type script engine for something like the Unreal engine. Between AI assets, AI assisted scripting... game development is probably going to get a serious reduction in labour requirements.
In the next few years to develop a very high quality game all your really going to need is a few artist designers with an eye for picking out good AI work... and a small team who is able to tell the scripting system what they want it to do. Create a 120 item inventory bag system, give all my items a weight identifier and so on. For that matter even things like level design could be tied into a natural language scripting system... if the AI can whip you up a level design based on a prompt that is 90% of what you want, all you need to do is some editing.