So current AI might be a bit primitive, but that will change. Eventually there will come the argument that even human authors are building on what has gone before, so why shouldn't an AI. The very words that we choose to express ourselves were first coined by authors of the past, even if that history is now obscure for large parts of our language. We don't automatically assume all current human authors are guilty of plagiarism, we recognise that the situation is more subtle than that. The same will become true for AIs. I don't know how close we are to that.
No, I'm not comfortable with AIs being used for this purpose, but I find it difficult to argue that there is something inherently wrong with it. Perhaps it becomes something like food packaging where we must be told the ingredients ("this novel contains 53.2% AI generated text") ... but I have no idea how you would enforce such a requirement.
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