Personally, I don't think it's necessary to rely on AI to write automation scripts, as scripting is fairly easy to do on your own. However, when working with complex code that involves concepts like Classes, Polymorphism, Inheritance, Encapsulation, etc., in Object Oriented Programming languages like Python, AI can be extremely helpful for guidance. It saves you from having to think about how to create and pass parameters to objects, but relying on AI too much can also make you forget the fundamentals of programming.
There's no official SmartBear plugin available for Visual Studio Code. Additionally, there are limitations when using Python in TestComplete, so code written in VS Code may not work seamlessly in TestComplete.