While humans don't have encyclopedic memories, our brain connects a few dots to make a thought. If I say "Luke, I am your father", it doesn't matter that isn't even the line is wrong, anyone that's seen Star Wars knows what I'm quoting. I may not be profiting from using that line, but that doesn't stop Star Wars from inspiring other elements of my life.
I do agree that copyright law is complicated and AI is going to create even more complexity as we navigate this growth. I don't have a solution on that front, just a recognition that AI is doing what humans do, only more precisely.