First of all, its way too clean. The picture has this really sharp look, and the blur looks artificial. The hind leg doesn't seen normal for the way you see the rest of the dog. Also, the ring of the dog collar has no imperfections, and the dog looks way to still for it to be living.
Look closely at the crud around the eyes, and the matching reflections. No way this is AI. Blur looks entirely normal for a modern smartphone, focus on the eyes with the nose falling off slightly.
It definitely looks it (for me the lighting and the eyes) but I don't think it is. The bag in the bottom right might be puppy's first food bag, and I don't think I've seen many AI photos with just a partial thing like that that still obeys the laws of reality. If it's AI, it's heavily human involved to tweak things until it got perfect.