This flair should be used when a significant portion of the wallpaper is produced by an AI (e.g. Midjourney). If the image is created using an AI but modified afterward, we leave discretion up to the OP (original poster) as to whether their post is flaired or not.
Flairing is not required on /r/wallpaper, but your mod team is evaluating ways to improve flair adoption. Remember, our goal is to improve community interaction, NOT needlessly gatekeep.