Then they get a product that legally isn't theirs and anyone can do anything with it. AI output isn't anyone's IP, it can't be copyrighted.
No difference from e.g. Shutterstock, then?
I think most businesses using AI illustrations are not expecting to copyright the images themselves. The logos and words that are put on top of the AI image are the important bits to have trademarked/copyrighted.
What's hilarious is that, for years, the enterprise shied away from open source due to the legal considerations they were concerned about. But now... With AI, even though everyone knows that copyright material was stolen by every frontier provider, the enterprise is now like: stolen copyright that can potentially allow me to get rid of some pesky employees? Sign us up!