Copyright exists to protect human authors and promote creation, which in turn leads to learning - from other human beings. Algorithms are not learning, they are automated tools which are consuming creative works and outputing derivative works.
The loophole is to use copyrighted works for free despite no learning taking place - no human being observing and developing their skills based on that work - rather, an algorithm transforming those works into some other useful interpretation of them.
The loophole is to use copyrighted works for free despite no learning taking place - no human being observing and developing their skills based on that work - rather, an algorithm transforming those works into some other useful interpretation of them.