Founder of StudyWand.com here, who received a 15k grant to develop an AI generating flashcard app in 2020 after an earlier prototype.

We've found students more consistently study ready-made cards that are at desirable difficulty (they get about 80% correct) and which are segmented by topic (e.g. semantic grouping of flashcards to tackle "one lesson at a time" like Duolingo). Students would prefer to use pre-made flashcards by other students in their class, then AI flashcards, then create and use their own.

There is limited evidence by Roediger and Karpicke who are the forefathers of retrieval practise that creating cards is also important. Frank Leeming (2002 study Exam-a-day) also showed that motivation when studying is peaked when you ask just a few questions a day, but every working day.

Now one of the vital benefits of retrieval practise with AI over creating your own cards is foresight bias - not mentioned yet in this thread - the fact that particularly in some subjects like Physics, students don't know what they don't know (watch this amazing Veritasium video, it also explains why misconceptions are so handy for learning physics): https://www.youtube.com/watch?v=eVtCO84MDj8 - basically, if you use AI quizzes (or any prepared subject-specific right/wrong system), you learn quickly where your knowledge sits and what to focus on, and reduce your exam stress. If you just sit their making quizzes, firstly you make questions on things you already know, you overestimate how much you can learn, and you consolidate on your existing strengths, and avoid identifying your own knowledge gaps until later on, which is less effective.

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To quote from my dissertation experiment on background reading for retrieval practise, the end is about foresight bias a little:
Retrieval practice – typically, quizzing - is an exceedingly effective studying mechanism (Roediger &
Karpicke, 2006; Roediger & Butler 2011; Bae, Therriault & Redifer, 2017, see Binks 2018 for a
review), although underutilized relative to recorded merit, with students vastly preferring to read
content (Karpicke & Butler, 2009; Toppino and Cohen, 2009). Notably mature students do engage in
practice quizzes more than younger students (Tullis & Maddox, 2020). Undertaking a Quiz (Retrieval
practice) can enhance test scores significantly, including web-based quizzes (Daniel & Broida, 2017).
Roediger & Karpicke (2006) analysed whether students who solely read content would score
differently to students who took a practice quiz, one week after a 5-minute learning session. Students
retained information to a higher level in memory after a week with the quiz (56% retained), versus
without (42%), despite having read the content less (average 3.4 times) than the control, read-only
group (14.2 times).
Participants subjectively report preference for regular Quizzing (Leeming, 2002) over final
exams, when assessed with the quiz results, with 81% and 83% of participants in two intervention
classes recommending Leemings “Exam-a-day” procedure for the next semester, which runs against
intuition that students might biases against more exams/quizzes (due to Test Anxiety).
Retrieval Practice may increase performance via increasing cognitive load which is generally
correlated with score outcomes in (multimedia) learning (Muller et al, 2008). Without adequate
alternative stimuli, volume of content could influence results, thus differentiated conditions to control
for this possible confound are required when exploring retrieval practice effects (as seen in Renkl 2010
and implemented in Methods).
Retrieval practice in middle and high school students can reduce Test Anxiety, when
operationalised by “nervousness” (Agarwal et al 2014), though presently no research appears to have
analysed the influence of retrieval practice on university students’ Test Anxiety. Quizzing can alleviate
foresight bias – overestimation of required studying time – in terms of students appropriately assigning
a greater, more realistic study time plan (Soderstrom & Bjork, 2014). Despite the underutilization
noted by Karpicke and Butler (2009), quizzing is becoming more common in burgeoning eLearning
courses, supported by the research (i.e. Johnson & Johnson, 2006; Leeming, 2002; Glass et al. 2008)
demonstrating efficacy in real exam performance.