No, AI does not create new derivative transformative works. Copyright law is very clear that the thing that is copyrightable is that modicum of creativity, reduced to a tangible medium of expression, that society must encourage and protect.
Derivative works need even more creativity to be protectable than original works because it has to be so newly creative as to be a different work, transformative, even though the original may still be very recognizable.
An AI system does not have creativity. At best, it could mimic someone who is creative, but it could never have creativity on its own. It is generative, not creative.
It’s like that monkey that took a nice picture, but the picture was not copyrightable because the person seeking to enforce the copyright didn’t create the work. It’s creativity that the Constitution seeks to encourage by the copyright clause.
it has to be so newly creative as to be a different work, even though the original may still be recognizable
Your definition implies Andy Warhol wasn’t creative.
You can make new derivative work without being creative. Just look at all the YouTubers copying each other.
