It can generate art out of art. It can do it exquisitely well. But it lacks experiential/social inspiration. This component only comes from recycling here.

(Without the atmosphere of industrializing 19th century Central Europe - we have no Kafka. You can't simply generate Kafkauesqueness out of pre-existing literature.)

And that's why I refuse to believe AI can be creative in a meaningful sense of the word.

Obviously it's not AI's "fault", so to speak, but that's kind of beyond the point :)

PS. I can imagine - now we're going far into the realm of s-f - truly sentient AIs producing art that's genuinely creative. Art actually stemming from a self-conscious AI's psychological experience. But then it would probably be utterly incomprehensible for us : ) "If a lion could speak, we could not understand him", as the philosopher remarked.