I would say this is an overall positive: The more people are aware of how easy it is to create fake this with AI the better, I would say. That would make people less likely to fall for it in the future, especially for something with greater consequences than just a parade that didn’t exist.
It doesn’t need to be generative to be AI.
That’s just every single “AI” product out there, that’s how they work: They scrape data from all over the internet, create a model that makes predictions based on that data. Chat-GPT doesn’t understand anything. It is simply a really complicated model which predicts what word is most likely to follow a given sequence of words. These “AI” aren’t inteligent, nor are they creative. They, by their very nature, stay as close as possible to the data they are given and never deviate, as a deviation would mean inaccuracy.
From an historical point of view, the word “AI” simply means “cool new technology”. That’s what it has been used to describe, while people think that AI means “artificial person”, like we see in the movies. So we need to be careful while using this word, because it can mean so many thing to the point that it has little meaning.