that is not what I was proposing…
What are you proposing? I don't think anyone has a real handle on what to do with AI. In part that's because there's a lot of hype around them. AIs are not really intelligent in the way we think of intelligence and they may well be very limited in scope. The art they create now is either fascinating or terrifying depending on how you look at it, but most of it is crap. LLMs can do school level essays because we've been writing those essays forever.
Some of the brightest minds are having in depth discussions of all this, we certainly aren't going to resolve it here. But WOTC saying they're looking into it is not a surprise and I don't think it's automatically a cause for concern.