Reform copyright, allow derivative works, abolish moral rights. What's the worst that could happen? Solves the problem of AI being "inspired" by existing works. Well, perhaps someone will write a crappy HP-inspired story about Tanya Grotter, a machine-gun wielding lady wizard who goes after bad Chechens (that is a real book, BTW). So what? The goal of copyright is cultural abundance, and that will (eventually) include AI generated works.
Look at Nosferatu, considered to be one of the great vampire movies. The movie was called that because they did not secure the copyright to the Dracula story, and after a lost lawsuit they had to destroy all copies and negatives. Luckily a few survived, and we can still enjoy it.