Short answer - Yes. The collation Latin1_General_CI_AS can be used for CA Process Automation.
There is not a lot of difference between the two collations:
width-insensitive for Unicode Data
SQL Server Sort Order 52 on Code Page 1252 for non-Unicode Data
SQL_Latin1_General_CP1_CI_AS was the normal default for US English SQL Server databases as this is a SQL Collation, though For SQL Server 2012 the default has changed to the Windows collation.
If your Database Server was created using the collation SQL_Latin1_General_CI_AS, then you need to maintain that collation across the database instances. Do not change the instance collation to be something different than the server.
Latin1_General_CI_AS is a Windows collation and can use an index when comparing unicode and non unicode data, where SQL_Latin1_General_CP1_CI_AS is a SQL collation and cannot do this. What this means is that and index search is done using Latin1_General_CI_AS which is much quicker than the index scan done using Latin1_General_CP1_CI_AS. An index scan can also cause performance issues on larger database instances.
You should also take into consideration if your user base will be using only English or there will be a mix of languages. Latin1_General_CI_AS does character expansions, where SQL_Latin1_General_CP1_CI_AS does not. You would need to discuss this further with your DBA since this will really depend on what the DB Server collation is set as, and what your needs are based on SQL vs Windows collation.
In general, Latin1_General_CI_AS will actually be the better choice, but if your server collation is still set to Latin1_General_CP1_CI_AS, do not change the instance collation to be different.