Ai is wrong word. They should use better word. The controversial thing is not automated computer generation of stuff. As you pointed out, whe have and had that plenty. Any procedural generated content and any computer player is ai driven. The controversial thing is that you train those things with real stuff and they are good at imitating. for copyrighted material that is so problematic by design, that you could have protected material still in the database of the thing. reproducing material is a license issue. And if the "AI" scrambles it and rearranges it, it still is the unlicensed material. One could try some fair use doctrine, but this is thin ice, as an ai is not a person - and that even brings up discussions about copyright of material created by such ai.
well, ok, those are problems, but not the problems people get emotional about. They see two other aspects. The automation, as usual, like you point out, machines taking our jooobs (as if ouotsourcing to chinese sweatshop would be any better). And the existential problem those machines pose. what they do is create art. And if they can do that, it devalues being human, beause it is athing many believe makes us human and not animal.I think it just devalues art, or rather shows that (most) art is not some spiritual gift or has deep meanings.