Actually there are several legal arguments about this currently ongoing. There is a lot of discussion and several lawsuits in progress.

There isn’t really a final decision yet, but I think I agree with Cory Doctorow’s opinion that the solution is to make the output of generative AI tools uncopywritable/public domain. This protects artists broadly, as any company that wants to produce a copywrited final work (e.g. film, television, music, books, etc) will need to hire an artist to do it.