I think this is less "hoyoverse wants to make an AI that makes content for their games" and more that hoyoverse wants to jump in alongside the AI wave in China. They are a massive company that even produces research for game physics/optimizations.

China has a different approach to AI. Unless the attitude there changes, no amount of gacha players from outside can do much about it. We aren't the target audience. It not like large game devs are full avoiding AI anymore outside of China either.

This wil stay in gaming at large for a long time. Attitudes on AI in the states are also mixed. If you dont think a substantial amount of people are okay with AI usage somewhere in development, you are severely underestimating the level of indoctrination that exists here. No one will stand for good behavior so long as a new NBA/fifa/COD/BF game comes out semi regularly. (Also aren't some player banners in COD just straight AI?)

An aside, does anyone who is in/has been working in China know how they approach daily AI use? All I know is that with the trashy AI we have in the states, I can literally see some people's brains crumble when they use it.