If AI makes the final output is where there’s trouble. AI’s aren’t human, their expression isn’t copyrightable. The prompt you give the AI is most likely factual rather than creative, which would make that uncopyrightable as well.

I am not convinced by that. I don’t think any lines have been drawn on how much creativity you put into a prompt for the resultant image to be considered copyrightable. This case is about someone trying to get the AI to claim copyright, and have that transferred to him as the owner of the AI. Which is like the cases where someone tried and failed to claim copyright over an image of a monkey that the monkey took because it was taken on his camera. He had no creative input into the shot so the image was not copyrightable.

You could condisider the AI like a camera - you have control over its input, what you point it at, the lighting levels, even creating the scene you point it at. All of which are creative elements. You did not actually create the image - light hitting a film did that. You just set it up to capture the picture you wanted.

So I could see the prompt being similar to setting up a shot for a camera and the AI being like a camera. With enough creative work being put into setting up a good prompt I can see a valid claim for copyright being made - though I am not aware of anyone testing this out i court yet.