Copyright law in general is out of date and needs updating it's not just AI that's the problem that's just the biggest new thing. But content creators of traditional media have been railing against what they perceive as copyright violation for ages.
Copyright law has been such a disaster for so long, while clearly being wielded like a blunt weapon by corporations. I can see the existential threat that generative AI can pose to creators if it becomes good enough. And I also am aware that my dream of asking an AI to make a buddy cop adventure where Batman and Deadpool accidentally bust into the Disney universe, or remake the final season of Game of Thrones, is never gonna be allowed, but there's honestly a huge amount of potential for people to get the entertainment they want.
At any rate, it seems likely that they're going to try and neuter generative AI with restrictions, despite it really not being the issue at hand.