My last interview, for the job I'm currently employed in, asked for a take home assignment where I was allowed to use any tool I'd use regularly including AI. Similar process for a live coding interview iterating on the take home that followed. I personally used it to speed up wirting initial boilerplate and test suites.
I fail to see why this wouldn't be the obvious choice. Do we disallow linters or static analysis on interviews? This is a tool and checking for skill and good practices using it makes all sense.
As someone on the other side of the table, I don't care if you used AI to complete a take-home project. I care if you can explain the strengths and weaknesses of the approach it took, or if you chose to steer it in one direction or another. It usually becomes quite clear those who actually understand what the AI actually did for them.