It's extremely easy to get the latest generation of AIs to produce outputs that in many fields sans-AI would be trivially considered as IP infringement.
While there are many interesting reasonable legal & technical arguments that it's not, the result completely undermines copyright protections regardless. If that's accepted at scale, copyright in practice will change completely. In effect, the choices are "block this, or entirely destroy copyright protections in many industries". You can't allow this without eventually allowing everybody to simulate their own NY Times reporters, produce their own Marvel movies, and create their own Taylor Swift albums.
If you do allow that, the many many affected industries have catastrophic problems.
Problematic though copyright laws are, I see no world where all those protections go away any time soon, and so if the courts don't agree to protect copyright already in this scenario, then it will eventually be legislated to make that happen. AI consuming copyrighted data and producing an output has to be considered a derivative work (or indeed, the model itself will be considered a derivative work) or IP protections are effectively broken.
There's a grace period now while we work our way there, but the politics is pretty clear and with no plausible path to "let's drop copyright completely" ASAP, I just don't see any other result in the medium term. Doesn't mean the end of generative AI by any means, just a slowdown as we move to a world where you need to negotiate rights and buy data to feed it first, instead of scraping everybody else's for free.