AI generated art isn't protected by copyright, NFTs artworks are protected by copyright. I argue that whether or not a piece of art can be protected by copyright isn't a determining factor in the quality of the art nor in how thought-provoking that piece of art can be. Beauty is in the eye of the beholder, not the creator, and if you were once fooled by AI generated art, and had genuine thoughts, opinions, and an appreciation for the AI generated art, then there is nothing contradictory there. AI generated art is still art, even without a copyright to stop you re-selling it elsewhere.

If anything, the inability to copyright it is bad for corporations and good for internet piracy. If a musician wants to create music but they signed a contract years back with the big music labels who now own everything they make, maybe AI assistance, or implied AI assistance, would be enough to make music outside the bounds of the contract that they can get paid properly for, even if internet pirates could legally make free copies of it. I dunno, it just feels like there's a lot of industry contracts screwing people over, and that AI might provide a way out without having to break the contract.