I'm kind of mixed on this, because I think AI art is pretty cool, but I also hate our current copyright system. I kind of agree with the copyright office that images generated by a prompt should not be covered by copyright. What if I just type in "cat" and set the seed to 1, and try to copyright that? What if I copyright the image for EVERY seed with that prompt? Literally anyone else could easily generate the exact same image, and are they going to be in violation of my copyright now?
It gets really complicated though. What if I draw a sketch and then feed it into stable diffusion to flesh it out further? Then I do extensive inpainting across the whole thing, then I take it to Photoshop and do further edits. At this point, I think it's fair to say this is an original image of my own creation, which should be eligible for copyright protection.