> seems to be in-house

This is key. The unethical part is not the use of AI (which is neutral), but corpos taking billions in profits from creators using creators' own copyrighted works. BigAI currently feels entitled to simply take these works for their own use, without permission or licensing.

This isn't hard stuff. Adobe Firefly is an example of an ethical, safe AI-powered art product that has been trained on owned stock images, licensed content, and public domain content.

>Adobe Firefly is an example of an ethical

For many people Adobe Firefly is almost as ethical as Stable Diffusion or Midjourney, as the authors of the images were not let to decide.

It's completely different because the artist explicitly sold or otherwise granted the rights to their creation(s).

lineart tweening is not the same as generating a complete piece of imagery. seeing this used as a 'look, they use ai! ai good' thing is quite dumb.