This is what ChatGPT explained as to why AI can't make 2D Pixel Art/Sprites.

AI struggles with 8-bit/16-bit sprite sheets because:

Pixel precision — Pixel art needs deliberate, exact pixel placement; AI models generate smooth, blended images instead of clean grids.

Frame consistency — Sprite sheets require identical proportions and palettes across frames, but AI drifts shapes and colors.

Palette limits — Retro sprites use very small, strict color palettes; AI creates many slightly different colors instead of a controlled set.

Grid alignment — Diffusion models don’t understand tile boundaries, so characters shift or bleed between frames.

Abstraction — Pixel art uses simplified, symbolic forms, while AI is trained to produce detailed, realistic images.

Training data — Pixel art datasets are small, so AIs aren’t well-trained for this style.