As a rule of thumb, if it is just replacing staging, I don’t have an issue with it. A staged apartment also isn’t “real” so if the AI isn’t adding windows and outlets that don’t exist it’s functionally equivalent to staging.
Most real estate agents are going to stage a house or condo for real regardless because people are really going to go there, not just look at pictures online or show up with a VR headset. So in practice this is only going to affect rental units that are not staged.
I imagine this is a much larger problem in high turnover rental markets.