So I'm curious — we're all here because we at least hate the current state of AI with hallucinating facts, being used to undress women and children, and all the fuckery that goes along with it.
I grew up watching Star Trek: The Next Generation, which takes place on a ship with a perfect AI that does everything right and basically does nothing wrong. It never hallucinates information; it's always right. It has never been used to undress people against their will; however, the Holodeck is kind of an extension of that and was used for that on Deep Space Nine, when operated by a Ferengi (capitalist alien race in a world where humans are communist). But the Enterprise holodeck would never do that. The shipwide AI also does not traditionally carry on conversations. The one time it does, the human was hallucinating — sort of. The doctor was in a pocket universe, people were disappearing, and at one point the AI told her she was the only crew person on the Enterprise, and no, that did not make sense, but that that was still how it was. Because, in her pocket universe, it was true.
So the question is... would you want a perfect AI that was incapable of lying or harbouring anything untrue? Basically you could ask it anything and it would give you the correct answer.
The one fault I can find with that fictional AI is when Data (the android), dressed like Sherlock Holmes, asked the computer to "create an enemy which rivals my intelligence." He meant to say Sherlock Holmes's intelligence, who he was cosplaying, but the computer made a self-aware malicious AI that got out of the Holodeck and tried to destroy the ship... because it was told to do so. Other than that, though.
...I'm not trying to mislead anyone, so I will drop the other shoe, answer the begged question now. I've always felt that to get to that level of AI, we need to wade through the shit we're in now. So yeah, before you ask, that's kind of the point of the thought exercise. However, I will also say that I do not think we will get to Star Trek AI, I think we will get to Terminator AI, destroying the world rather than lifting people up. I think maybe in the Star Trek universe, AI didn't really take off until people realised that war wasn't the answer, after WW3/the Eugenics Wars, and so they were making AI to make things better, not worse. We are not in that timeline. I look at what is happening now, IRL, and the timeline in the Terminator franchise, and it's clear to me that that one is more realistic.
That said, I still wonder if anyone would want AI if it did not have any of the problems.
I have a theory here:
There is definitely problematic gen AI in the Star Trek universe, but it's only ever adressed through the holodeck. It's made pretty clear that everyone can create programmes there with simple voice prompts. It has also been shown that there are no formal rules for using the likeness of living people in those programmes. This is an oversight in my opinion because that problem would be a common concern. The existence of this kind of technology suggest that any kind of entertainment media can be easily created on a prompt, even through the ship's computers.
On the other hand, we rarely hear about contemporary human-made literature. When literature is mentioned it's usually alien or 20th century. Wouldn't this suggest that it plays no role anymore? Maybe there are still human writers, but the general public isn't interested in such things, since they can get what ever they want from a computer.
So my bottom line is that concerning generative AI Star Trek actually shows how problematic it is, probably by accident. I wouldn't want Star Trek-level AI, but at least it doesn't kill everyone.
Again (unrelated to your comment sorta), Star Trek avoids stuff that isn't in the public domain, which is why Sherlock Holmes was commonly used in the Holodeck.
As far as Holodeck stuff of existing people, they did exactly that on DS9. Quark was offering pornographic holo-vids of Kira, the station second-in-command, and when she found out, she demanded he deleted the program. I think he also paid someone to scan her for the program.
Next Generation already had Barclay recreate caricatures of Enterprise officers for stress relief in "Hollow Pursuits". Here they stressed that there were actually no regulations for recreating officers on the holodeck. Kind of bad writing.