If an artist uses a song writer, has plastic surgery, uses musical instruments... They should all have to disclose this.
Velvet Sundown is no different than when a studio assembles a group of four boys, pays songwriters, dance choreographers, makeup artists, musicians, etc...
An artist sat down, used AI as an instrument and made music.
I've long stopped considering electronic music to be music because a computer is not an instrument.
The music industry has loved this kind of thing because musical instruments require talent to play, especially to play well which gives the artist a large mesure of power over their own destiny, rights, a voice... things that music execs hate because they can use that to get more of their precious, sweet, sweet profit.
A "DJ" or rapper can be replaced easily as they don't have any actual talent. Doubly so for pop stars these days as it's all autotuned to within an inch of their lives (so much so that the "artist" can't recreate the sound using their own voice, so they all mime at their shows these days, and to think there was a time where we derided Kylie because she was the only one doing it). The person doing the performance has become the least important part of it considering most of the time someone else writes their own song. Execs really dug their own grave by making music so drab, boring, repetitive and especially by removing all requirement for any kind of musical talent, AI is set to eat their lunch and their biggest problem is not that AI can replicate their process... but the fact anyone can use it, their problem is that they don't control the AI.
You're right that AI is no different than when a label assembles a band (or runs a non-talent show to find someone).. but you couldn't be more wrong about AI being an instrument.