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Inside the AI Porn Marketplace Where Everything and Everyone Is for Sale
(www.404media.co)
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It's (rightfully) currently illegal, but that doesn't stop people. Keep it illegal, increase punishment drastically, make AI-created material a grey area.
Its already the worst crime around and people still do it. Maybe its not the punishment we need to focus on.
I'm not sure increasing punishment is actually an effective manner of combating this. The social implications of being a child predator are likely to have a more deterrent effect than the penal system imo (I don't have data to back that).
I, personally, am an advocate for making treatment for pedophiles freely, easily, and safely accessible. I'd much rather help people be productive, non-violent members of society than lock them up, if given a choice.