*As of now, AI generated works are allowed on the site
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Not a fan of AI, but "do you think AO3 should ban" never actually solves a problem. Because how can you tell what's AI and what's human made? It is extremely hard to tell, and going around accusing authors of using AI — just because you suspect they do — does more harm than good. Chances are that you're accusing real writer of being AI and ruining their day at best, making them quit writing at worst.
And the act of banning never stops something from existing. It only makes it more difficult to find and avoid. Tumblr bans porn, but you can still find porn on Tumblr. The only difference is that they're no longer tagged as porn, which means you're more likely to stumble upon them because blocking the tags no longer works when they are not tagged as porn.
The same applies to AI generated works on AO3. For now they are tagged as "AI generated". You can avoid them if you don't want them.
Once they're banned, people will no longer tag them as AI, which means you have more chance of unknowingly reading and leaving kudos on AI.
Also, no, unless an author says "this was written by AI" you cannot tell for sure if something was written by AI. Em dashes aren't evidence of AI. Long and overly described paragraphs aren't evidence of AI. Real human writers do write like this and AI was trained to mimic real humans' works.
If AO3 bans AI, you will be dealing with witch-hunting, genuine writers getting wrongly accused of using AI, and AI works no longer being tagged as AI (meaning they are almost impossible to avoid and no for sure if something you read is AI)