Copyrights and IP laws don't only come into effect if profit is made. Fan products are usually tolerated by companies because it's free advertising and fans get angry when it does get taken down.

When a fan product starts making money, it's usually because it directly competes with the original IP and then they act. Even then, Etsy has thousands of shops with copyrighted content but the small profit loss doesnt justify the loss of reputation for the companies.

That being said, it's the user who uploads it who is at fault and not the tool used to create it.

Ultimately, I think it's the platforms that let users upload copyrighted content and celebrity likenesses that should be at fault. Take for example the Taylor Swift debacle. An image generator was used to create the images sure but twitter chose to let it float on their website for a whole day even though it was most likely reported in the first 5 minutes.

There's also the fact that if we start demanding AI doesn't use copyrighted content, it kills the open source scene and cements Google and Microsoft's grip on our economy as we move towards an AI driven society.