No it doesn’t.

Morrowind’s entire map was hand made. All of its quests were hand made.

Starting with Oblivion, they moved to make most of the map and quests automatically with minimal human intervention.

To the point that they admitted it was too much for the tech at the time and actually hurt the gameplay, and pulled back for Skyrim, using a mix of computer made and human made content, adding in the radiant quest system in an attempt.to make the gameplay “endless”.

The modern thing we call AI is just the chatbots from a decade prior with improved processing power and vastly larger data sets to work with. The tech in those chatbots had been working in various pieces for a decade before that.