Our privacy was long gone well before AI companies were even founded, if people cared about their privacy then none of the largest tech companies would exist because they all spy on you wholesale.
The ship has sailed on generating digital assets. This isn't a technology that can be invented. Digital artists will have to adapt.
Technology often disrupts jobs, you can't fix that by fighting the technology. It's already invented. You fight the disruption by ensuring that your country takes care of people who lose their jobs by providing them with support and resources to adapt to the new job landscape.
For example, we didn't stop electronic computers to save the job of Computer (a large field of highly trained humans who did calculations) and CAD destroyed the drafting profession. Digital artists are not the first to experience this and they won't be the last.