Larian Studios most recently was under fire for this [1]. Like I can see a director going “what would X look like?” and then speeding over to the concept artists for a proper rendition if they liked it. I don’t think this is at scale though. Any large business is just going to get rid of the concept artists.
[1]: https://www.pcgamer.com/games/rpg/baldurs-gate-3-developer-l...