AI feeds on hand-created art in the most literal sense. Without hand-created art to train on, there would be no AI art.
The problem with most AI models is that they are obviously infringing on copyright by being trained on unlicensed copyrighted materials. This is likely to bite the companies that produce these models, and those that use these models, in the ass in the near future.
I have no problem with AI algorithms so long as you train them exclusively on your own art. I have a problem with copyright theft, where people take other people's art, remix it through an AI algorithm, and claim to own the copyright on the result.