Copywrite of AI art
Although AI art generators have mostly declared that AI art is free to use and redistribute, there are some ongoing court cases where groups of artists have claimed their art went into training some Models that the code uses.
While this ongoing legal action is unresolved, some companies have reservations about using AI Art.
One example is a rejected game from Steam. The Authors were sent this
After reviewing, we have identified intellectual property in [Game Name Here] which appears to belongs to one or more third parties. In particular, [Game Name Here] contains art assets generated by artificial intelligence that appears to be relying on copyrighted material owned by third parties. As the legal ownership of such AI-generated art is unclear, we cannot ship your game while it contains these AI-generated assets, unless you can affirmatively confirm that you own the rights to all of the IP used in the data set that trained the AI to create the assets in your game.
Hopefully this limbo will be resolved soon, full story here: