The issue is their CEO previously posted about how AI could be used to skirt copyright, and that he couldn’t tell which were legit pokemon or AI generated ones anymore due to how far the technology has come.

They hired a concept designer for their monsters, though it’s not clear if the designer used AI to generate concept art to then redraw. At the moment it’s all speculation with no hard evidence of wrongdoing.

Outside of the CEO saying these things publicly, and the company’s previous title that was based on AI image generation, there is nothing to say that these monsters were designed with AI.