There's a lot of push back against AI-generated graphics and music. For code, it's more difficult to know. AI is used by some people to automate the boring tasks, so that they can focus more on the artistic side.
It makes sense that a creative medium with a long tradition of pushing boundaries of what people can create, frowns on use of generative tech unless you have created it yourself. Back in the day the pushback was against using AMOS, or a PC, or programming in C, or using a GPU, or using MP3, or using Photoshop, or using another group's demo engine, or using a commercial game engine, or... AI is just the latest. And like its predecessors, it will gain legitimacy if people create genuinely interesting experiences with it.
Demos are now often using Unreal engine Unity Godot