There's nothing new here that couldn't be done manually before; all that has changed is the speed at which it can be done.
I do not see any way a law will stop what is essentially math from being performed.
While everyone is worried about job losses and Skynet, these sort of side effects of accessible AI will be what fundamentally shift society.
Simply put, I don't think we'll see anything we haven't seen before, because this isn't a new thing that hasn't been done before- only the means of production (using AI) is new.
A generative model is different. You can produce as much content with it as you want, hallucinated out of thin air. The production of said content doesn't have externalities, other than electricity usage, if the content isn't distributed.
This is not true, its the buying of it that drives production. If you make your own meth or pirate CSAM then you would be harming only yourself.