Fair Use is a defense, not a right. Just being transformative isn't enough here, that's just one of many different factors that needs to be checked. Furthermore Fair Use includes evaluating the effect an infringement has upon original work's value.
So when your image generator keeps spitting out Gettyimages watermarks, while you are building a service that is in direct competition with Gettyimages for stock images, there is an argument to be made that Fair Use really doesn't apply here. As what you are doing is essentially stealing Gettyimages' work, AI laundering it and selling it back to their previous customers.
With StableDiffusion a Fair Use defense might have an easier time, as the results are released to the public. But it's still not exactly clear cut. If you type in "Mona Lisa", you'll still get something that looks like a copy of the Mona Lisa, not like an original work.
So when your image generator keeps spitting out Gettyimages watermarks, while you are building a service that is in direct competition with Gettyimages for stock images, there is an argument to be made that Fair Use really doesn't apply here. As what you are doing is essentially stealing Gettyimages' work, AI laundering it and selling it back to their previous customers.
With StableDiffusion a Fair Use defense might have an easier time, as the results are released to the public. But it's still not exactly clear cut. If you type in "Mona Lisa", you'll still get something that looks like a copy of the Mona Lisa, not like an original work.