It says directly on the page:
Rules: If your game does not follow the rules, it will be deleted. Your game must be created during the jam You are allowed to use media that is not subject to copyright. After the submission period is over, you can fix bugs and add new ways to play (web build or any other), but not radically change the game. You must also match the theme that will be announced when the jam starts. Games containing 18+ content are not allowed! No manipulating votes.
So the answer to OPs question is yes! you can make a full ai game using AI art and everything if you want. However I have been to the discord of this community and everyone seems to really dislike AI so don’t feel too surprised if they give you an unfairly low rating out of spite for it.