A key litmus test: can an AI produce output that can substitute for a copyrighted work, to the extent that the commercial value of that copyrighted work is dimi

A key litmus test: can an AI produce output that can substitute for a copyrighted work, to the extent that the commercial value of that copyrighted work is diminished? e.g. if a future hypothetical DALL-E-for-video can diffuse a mkv file containing something that plays very much like Star Wars, then surely possessing the model would be treated as possessing a copy of the movie.