As generative AI moves from research to product, co’s should pay for training inputs: either buy the book / art or use public domain.
Paying creators for random, one-off output is silly. Neural nets regurging a lightly modified version of what they’ve seen before is called “an intern.”
Banning or paying for actual market substitution makes sense: you don’t want to kill off an artist’s market with cheap fakes, unless the fakes can be easily told apart.
H&M is legal, not H&M branded as Gucci.
If the world is flooded with Stephen King copies, but they aren’t marketed as King: no harm to the main market, just the low end. Hack writers are already legal.
If we get AI-gen’d art that’s better than King: good! We’re a long way off, and when it happens we’ll have solved way more important problems than the market for novels.