It’s amazing that someday we’ll be able to pass in low fidelity pixel art sprite sheets to an AI and get back high definition hand drawn 2D graphics for use in games.
I don't see how animations would work with the current crop of image generation tools. If you feed in 5 frames of a character swinging a sword pixel art you'll get five wildly different renditions of the character, not one character with a smooth tweening of the sword swing.
I've been sending emails to the creators of mid journey to scrape the entire archive over at spriters resource to create a custom model specifically to generate pixel sprite sheets.