From an existing legal perspective (giving some reddit tier legal advice here) I'm pretty sure there's nothing legally wrong with AI art so long as its not straight up plagarism however there is another argument thats likely going to need settling at some point and iI'll do my best to summarise it.

Humans learn from other peoples work, but then eventually develop their own style and become net producers of 'data' (data being pictures, books whatever we're training the AI on) Current AI never does this, it can effectively only remix other peoples work and thus needs to constantly scrape other peoples work in order to expand its repotoir it is never a net producer of 'data', this is effectively proven (for current AI) by the fact that using AI output as training data can actually make the AI worse because it compounds existing flaws and 'AI hallucinations'

This means human artists initially rely on others but ultimately create value from their own effort, AI on the other hand (for now) must continuously rely on the work of others in order to produce value. Or to put it even more simply, the AI industry is entierly reliant on the work of human artists but gives no credit or remediation.