My instance, sh.itjust.works, just went through this.
It got started before the turn against AI art and before people could easily recognize the AI art style. I think the admin had a competition, and an AI-generated lemming won.
Having been a recent member, I always thought it was incongruous that I'd bitch about AI on this server while the AI-generated lemming was smiling at me from the homepage sidebar.
I proposed someone draw a new icon, and the admin set up a competition with no ban on AI-generated images. Last I checked, the leader in the race was AI-generated with the majority of human-drawn stuff being explicitly low-effort placeholders. I haven't had the heart to check into that thread since I voted for the best human-drawn piece of art (which was a true second to the AI icon in my heart), though I see its exploded in comments, so I imagine there is a fierce war raging.
So from this, a few possibilities:
a) People don't like working for free. You'd think, from all the jibber jabber, that there are all these artists just willing to contribute to community projects, but maybe there there is not.
or
b) People don't like competitions. I wouldn't want to work for free for a CHANCE at contributing for a rinky-dink lemmy. I'd rather talk to the sysadmin about what they want, what I think I can offer, and go from there, with the confidence that this concept--which is not mine--will be put into circulation.
or
c) People don't like competing with AI. Imagine you spent hours drawing something and you get beat by a prompt generated in a few minutes. I'd be pissed, and I'd want to avoid feeling that way, so I'd avoid competition where AI is allowed.
c2) AI probably has an edge in open competition because it will be blandly familiar to the average uninterested voter.
or
d) Artists might not want to contribute to server that already has an AI banner and is running a competition without an AI ban because why would they volunteer to support a server that is not supporting them?

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