I'd agree if this were about The Game Awards or similar, where indie devs are expected to compete against the AAA goliaths, but I've always understood the Indie Game Awards as being more about the craft then the end product.
From the FAQ:
> The ceremony is developer-focused, with game creators taking center stage to present awards, recognize their peers, and openly speak without the pressure of time constraints.
https://www.indiegameawards.gg/faq
Regardless of AI's inevitability, I don't particularly care to celebrate it's use, and I think that's the most reasonable stance for a developer focused award to take.
That's a good point—this being the indie game awards. I still think it makes sense to have separate categories that allow for AI-generated content but "indie developed" (versus an "Indie Art Award" that absolutely prohibits AI-generated content).
We should be able to celebrate the creation, execution, concept of a game without letting AI assets nullify the rest.