Regarding AI-created "art":
It's all subjective, I'm guessing, but I don't think it's an offense. I mean, most of the "greats" throughout history attribute their works as inspirations from a higher power. AI-created (stable/unstable diffusion) art seems to be simply another way of processing these inspirations.
Hey, I feel a little hurt by, and have for some time now, electronic-musical creations, but that doesn't make them any less art.
After watching countless tutorials on the process of diffusion, the shit seems pretty damn artistic to me. I think we'll all likely continue to be moved by certain things, and bored (etc.) by others.