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I thought we saw instances recently of AI outputting verbatim snippets of its text input? It's not impossible, I mean the well-known problem of overfitting is a simple example of how it can happen.
That's true, but I was only talking about art and stable diffusion. I know it's more of a problem with LLMs but AFAIK every time someone finds a way to get it to quote something copyrighted verbatim, it'll just cease to function. The most I've ever been able to get it to do are things they've already been pretty much agreed to be fair use, like summaries and criticisms.
And yeah over fitting is a problem in some models, but the ones taking your money like Dall-E have systems in place to mitigate it. I think it's only considered theft as much as when a comedian hears a joke way in the past and forgets that it was already used in someone else's routine. It's not really a problem until the entire routine is just someone else's routine.