I think in reality its very much still undecided law in most ways that practically matter and a lot of decisions will still be made based on the pay rates of the lawyers for the different parties involved.

As a simple example, assume a specific LLM-based tool (like Google's own, or someone else's) happens to generate a social media mascot for you that looks a lot like the modern rendition of Mickey Mouse.

Let's see how long that creation flies as public domain because it came out of an AI (that almost certainly consumed a giant amount of content produced by Disney as part of its training).