Right now, AI is taking people's original works and rehashing them in a way that directly competes with the original work. Some AI firms (e.g. perplexity) just have their LLMs paraphrase the work lightly.
This is a problem because it drives original work out of business. Even setting aside matters of originality, artistic value, and AI being vapid slop:
Gen-AI is and will remain a derivative work that is reliant on original human-made work
ChatGPT is not going to do investigative journalism. If we let AI push all journalists into bankruptcy, the news just becomes an endless sewer of PR statements recycled into AI slop.
If you don't want Google's woke "diverse nazis" to push real news into bankruptcy, copyright is needed to stop them.