ChatGPT refuses to generate Studio Ghibli image of AI Colonel Campbell from Metal Gear Solid 2.

It knows.

I suspect this is because chat GPT cannot identify a single non-proprietary reference image.

This is a recognized IP issue, you can make a work of art that is "inspired" by a proprietary work if your work doesn't take elements directly from theirs and is not a "copy".

But the notable exception to this is collage, in music sample limit. Where you have not "coppied" a single image but your collage is just multiple samples from the same source. So if all the samples of Colonel Cambel come from the same IP holder, anything chat GPT generates would be a "copy" or a "collage" which would be over the sample size. These cases are constantly argued in court, but if you cannot identify a single reference which is NOT from the same IP you are basically guilty by default.

You can't copy a Salvidor Dali without permission and pass that off as your own IP. Nor can you steal elements of it, nor can you make a "collage" of a bunch of Dali images and claim the work is original.

AI is like Uber, it's blatantly breaking the law on such a scale and with such impunity that they are forcing the law to change through violation of it; it's a content piracy revolt by big tech