Things similar to the “interpolation” part (not the generative part) are already used extensively especially for game and movie sound design. Kyma [1] is the absolute leader (it requires expensive hardware though). IMO later iterations on this approach may lead to similar or better results.
FYI, other apps that use more classic but still complex Spectral/Granular algos :
https://www.thecargocult.nz/products/envy
https://transformizer.com/products/