It's not how fair use works now, but many things about copyright law will have to change radically over the next few years. There's too much at stake.

What is at stake?

Billions of dollars in investments that will partially benefit lawmakers?

Well.... content creators and publishers have trillions.

Content creators and publishers are also the primary ones who are using generative AI. They aren't a united monolith against generative AI.

As long as the change is to reduce copyright restrictions on everyone, rather than just giving AI a pass to copy and launder the work of others with impunity.

This is what people on the "this is copyright infringement" side don't understand. Even if it somehow is copyright infringement by the standards of today's law, those laws will inevitably change in the near future. Generative AI is far, far too lucrative and convenient to society for it to be crippled by obsolete copyright infringement laws formed in a time where generative AI was a thing of science fiction novels.

Also “transformative” doesn’t have its everyday meaning in this context:

“The Godfather” film is absolutely a transformative interpretation of Mario Puzo’s book and a fully distinct, valuable work of original art. Paramount still needed to pay Puzo for the right to base it on his words.