I'm noticing this seems to be the heart of the issue, that is the level of human involvement. If that indeed is the issue then it would be interesting to explore where the line is just from an artistic endeavour. How much human interaction or effort is enough. If for instance someone recorded all their own training data, designed their own NN, trained it, and prompted it would that be enough or not? I also get the sense that part of the issue is the underlying algorithm, that is anything involving NN is bad regardless of the circumstance.
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