What definition of "sufficiently transformative" doesn't include "a book about wizards" by some process being used to make "a machine that spits out text"? A magazine publisher has a more legitimate claim against the person making a ransom letter: at least the fonts are copied verbatim.
There are legitimate arguments to be made about whether or not AI training should be allowed, but it should take the form of new legislation, not wild reinterpretations of copyright law. Copyright law is already overreaching, just imagine how goddawful companies could be if they're given more power to screw you for ever having interacted with their "creative works".