I think that the law is woefully unequipped to handle this situation, but there is definitely an ethical concern over training your models on copyrighted work.

I think that the law is woefully unequipped to handle this situation, but there is definitely an ethical concern over training your models on copyrighted work. Adobe isn't going to scrape images off of social media to train their image generator and that will always put them behind companies that do. I can't say whether that's fair but I have very little faith that regulators will understand this issue enough to find a solution.