It's pretty obvious that generative AI should fail that test; because the whole point is to compete with the underlying works, and the technology is marketed and understood that way. It doesn't have the same defense as Google Books, because that is so crippled with copyrighted works that it cannot be used as a substitute for the books it's searching.
I mean a lot of people are hyping ChatGPT as a replacement for Wikipedia (which is was obviously trained with), and image generators as replacements for stock imagery (and there are documented cases of those reproducing recognizable watermarks: https://photutorial.com/stable-diffusion-watermarks-investig...).
Also generative AI systems aren't people, so I think it's totally fair to not grant their operators rights by analogy to something a human would do.