Comment by LarsDu88

I actually think many of these are non-issues if devs take the most likely approach which is simply doing a hybrid approach.

You only need to apply generative AI to game assets that do not do well with the traditional triangle rasterization approach. Static objects are already at practically photorealistic level in Unreal Engine 5. You just need to apply enhancement techniques to things like faces. Using the traditionally rendered face as a prior for the generation would prevent hallucinations.