Comment Ars Gratia Pecuniae (Score 1) 23
The AI angle is new, but from an artistic integrity perspective, studios have been rewwriting stuff for ages. I've seen re-releases under a new director come in with added scenes/characters (Night of the Living Dead springs to mind) even before computers, and Lucas of course inserted all sorts of stuff into what fans would consider a finished trilogy. The effect on me is not one of shock, but rather, "ah, I wondered when they'd realize they can do that...."
Now, all that being said, the big difference here is that they need the actor's likenesses for these new scenes. It's being published with new material, a new plot, and under a new name: that sounds like a new movie. If they need the actors likenesses for a new movie, presumably, even under Indian law those actors are entitled to a new contract, which they can and should refuse to sign. Even if the AI implications of likeness rights are half-baked at this point, it's a big enough risk that no stduio should be willing to attempt this.