I think it can - procedural generation consist of procedures, that is elements designed by humans, which are just connected into a bigger structure. Every single template, rule and atomic object (e.g. a single room in a generated house) is hand-designed, and as such no matter what comes out the elements and connections were considered by a real human. On the other hand, generative AI is almost always some sort of machine learning, that is an approximation of what a good structure of something should be, but it is only a very poor, randomised approximation. You have absolutely no guarantees nor constraints on what might pop out of the model - that is my main concern with genAI, though the whole outputted thing looks reasonable, upon closer inspection it has a lot of inconsistenties.