both of you are wrong.

The AI created something using source material as a learning tool. In the same way one would grow up seeing art from Picasso and take inspiration from him. Creating that is not stealing. But you also let a machine make it for you, so it isn't yours.
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RT @parkerrsimmons
"I CREATED this art with an AI! It's mine!"

Could you create it without having fed that machine art you didn't license or own?

"Well. No.…
https://twitter.com/parkerrsimmons/status/1578457673158127616