Unpopular Opinion
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Good question.
Ok, so let's say the artist does exactly what the AI does, in that they don't try to do anything unique, just looking around at existing content and trying to mix and mash existing ideas. No developing of their own style, no curiosity of art history, no humanity, nothing. In this case I would say that they are mechanically doing the exact same thing as an AI is doing. Do I think I they should get payed. Yes! They spent a good chunk of their life developing this skill, they are a human, they deserve to get their basic needs met and not die of hunger or exposure. Now, this is a strange case because 99.99% of artists don't do this. Most develop a unique style and add life experience in their art to generate something new.
A Software Engineer can profit off their AI model by selling it. If they are make money by generating images, then they are making money off of hard working artists that should be payed for their work. That isn't great. The outcome of allowing this is that art will no longer be something you can do to make a living. This is bad for society.
It also should be noted that a Software Engineer making an AI model from scratch is 0.01% of the AIs being used. Most people, lay people, who have spent very little time developing art or Software Engineering skills can easily use an existing model to create "art". The result of this is that many talented artists that could bring new and interesting ideas to world are being out competed by one guy with a web browser producing sub-par sloppy work.