AI can generate specs and development plans but a tremendous amount of trash can slip through those specs and plans resulting in complete garbage as output.
I'm using AI a lot, in planning but I take close manual oversight on specs and development plan and still read all active path code (give AI a little but not too much leeway on testing, since sometimes they start writing test asserting true == true).
I think you're right. I think that's why I like this approach - it's keeping you in the loop for most of it - and you just get documents as output that you can edit, check, and iterate on yourself.