To correct the common misconception:
Sometimes AI image generators insert a watermark because they have seen a lot of watermarks on certain kinds of images during training. This does not mean that the image itself is a copy of any particular image in the training data.
Producing (distorted) copies of images in the training data takes some real effort, and typically only occurs for images which are heavily repeated in the training data... Most of the complaints along these lines can be compared to complaints that cars cause massive bodily harm if you steer them into lightposts: The problem is easily preventable by not driving into a lightpost.
I think the "well it's transformative" argument is pretty bad faith and I think a lot of the people making it might know that.
Generative AI cannot exist without pre-existing bodies of work created by human labor. It also displaces that labor and hurts the people whose content was a requirement for AI to exist. From this view, AI is not fair use.
Producing (distorted) copies of images in the training data takes some real effort, and typically only occurs for images which are heavily repeated in the training data... Most of the complaints along these lines can be compared to complaints that cars cause massive bodily harm if you steer them into lightposts: The problem is easily preventable by not driving into a lightpost.