Firstly, what qualifies as "using AI"? Admittedly I haven't actually read their licensing, but I'm just going to take a guess and say that it bans all forms of AI used anywhere in production. Almost every compiler I use these days has auto predict. It's rarely useful, but if it does happen to guess the rest of the code I was already going to type, and I accept that, did I use AI to assist my coding? Back in the day before it was an llm the auto predict was actually decent, so not all of them use AI. How would you even know whether your is AI or not?
So two things. First, it’s a policy, not a license. Second, the definition of AI generated is very clear in the policy.
I don’t know why you would criticize it without reading it, but the main problems with AI generated code are legal, not quality related, and they are also clearly laid out in the policy.