I was expecting to watch a terrible anime with bad animation and designs, but this show actually surprised me in a good way. The story is solid and has the potential to evolve into a really interesting 12 episode series. The characters are funny and likable, and the animation, direction, and backgrounds are all impressive. Don't get me wrong, you can definitely tell that AI was involved, but it's still much better than you'd expect.
After looking at the credits, I found out that the show wasn't entirely made by AI. They used motion capture from real people to improve the animation and incorporated CG models to make it easier to animate. I think the anime was initially created in CG, then an AI model was used to convert it into 2D, with 2D animators revising the designs. The voice acting and script are also really good. You can tell that the creators put a lot of effort into this show, so it's not as "soulless" as some people have claimed.
So, should you watch it? If the idea of AI being involved in anime doesn't bother you, definitely give it a try. It's a good show, though it would be even better with more episodes and if it were a traditional 2D anime.