The thing is, this is not "intelligence" and so "AI" and "hallucinations" are just humanizing something that is not. These are really just huge table lookups with some sort of fancy interpolation/extrapolation logic. So lot of the copyright people are correct. You should not be able to take their works and then just regurgitate them out. I have problem with copyright and patents myself too because frankly lot of it is not very creative either. So one can look at it from both ends. If "AI" can get close to what we do and not really be intelligent at all, what does that say about us. So we may learn a lot about us in the process.