If all engineering is, is altering CAD models to conform to local government regulations, then conceptually surely we can procedurally generate a whole fucking city, adding in sewers and power and other infrastructure as it goes.
The reality is much closer to how stable diffusion and other AI-generated art is now - technically and creatively impressive but often nonsensical and broken.
And, as another commenter noted, also for cities design. There are actually a few versions of this: I worked on one called Delve https://www.sidewalklabs.com/products/delve
Typically they use constraints optimization or wave function collapse under the hood, on top of some sort of procedural generation pipeline. A few others are Spacemaker, Hypar, and Testfit.