I believe the issue is NOT AI-generated content but how people use these tools.
People often forget (by accident or intentionally) that these AI writing tools are “ASSISTANTS” and they should be treated as such.
The vast majority of webmasters who claim AI-generated content has done more harm than good is because they expect these tools to “replace” writers instead, as stated above, treat them as what they are…a tool to assist you in your content creation process.
Personally, I ALWAYS proofread everything I generate with an AI writing assistant before hitting the “publish” button to make sure I add a more “human-like” feeling to my content.
I mean, AI-generated content is GOOD if you do your homework, do your kw research, and build a comprehensive article outline. Also helps a lot if you have a clear understanding of who you're writing for and what are your goals.
It's no different to spinning text for use on websites. There is nothing wrong with that as long as you proof-read the output and make sure it reads correctly for a human, you should never ever write for bots, that will get your rankings trashed.
A great tool to help you write content faster and better is Frase. I've been using for years now and it constantly surprises me on how good it is.