These "illegal content" moral panics have ruined Internet freedom, they are now ruining AI as well. Such moral panics have been used as an excuse for absolutely heinous mass surveillance of the entire population.
there is no panic here. every reasonable person agrees this is a problem, and it will take very little effort to fix it. these AI companies are not hurting for money. every single one of them is valued in the billions of dollars. they can spare "0.5 ppm" of their funding to go do what almost everyone agrees needs to be done.
I'm not saying that more shouldn't be done, but that doesn't mean that the solution is easy or that a perfect solution even exists.