Yeah, I think in the general case there's going to be a significant amount of selection and arrangement of the works from the AI, though I guess that even then none of the underlying images (or such) of the AI get protection.

I wonder if they know about the "inpainting" technique where the human generates an image, erases parts of it, then adds another image and has the AI fill in the blanks and make a new image based on the resulting image?

I think that'd be harder to disentangle the way they do right now to say these parts are copyrightable because the human did them and those parts are not because the AI did them since you can't really separate the inputs at that point.