replit just unveiled a coding has an AI called "Ghostwriter" that does the same sort of thing.
I think BiaB is an excellent example of a program that does things correctly. Unlike these neural networks that are fed on data trawled irregardless of copyright, the "raw materials" of BiaB were created by content creators with the knowledge that the would serve to create new works.
Those authors have given up the rights to their original works, and have been fully compensated for doing so.
If companies like MidJourney want to have a AI that legally creates artwork, they should pay artists to create training data, while also letting the artists know that the artwork will be used for the creation of copyright free artwork.