I found the headline confusing, I think they’re saying

The Iconfactory, a design and development [company], is selling some apps — and AI is partially to blame | TechCrunch

As for the AI portion

“ChatGPT and other AI services are basically killing @Iconfactory, and I’m not exaggerating or being hyperbolical,” Iconfactory developer Sean Heber said in a Mastodon post earlier this month.

The issue isn’t that people are using AI instead of mobile apps, but how vibe coding is affecting the need for app design firms like theirs. Besides building its own apps, the Iconfactory generated revenue by offering app design services, which include things like icon design (hence the name), app design, marketing asset creation, plus branding and consulting services.