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Teen boys use AI to make fake nudes of classmates, sparking police probe
(arstechnica.com)
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this post was submitted on 03 Nov 2023
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That just means the person that used AI to make something can't claim those rights for the generated content -- other laws still apply.
Everyone else still retain rights to their likeness in most places, and I'd imagine that still stands in this case.
Historically, I know that a big way that the dissemination of these sort of images was stopped was by using copyright law (because they're using the likeness of the subject). I'm worried how that will work if there's no copyright law to fall back in.