It might be art but it's art created by humans using matrix multiplications and a lot of data. For me the image generators are tools. They don't have intention, consciousness, and don't "know" why they produce something.
So if you are asking if AI alone can produce art, I would say no, because AI lacks these properties. You have to present a prompt and press a button, that person is the creator of the Art. The AI when prompted can just produce sth. that looks like art to us humans. The user who prompted it has to add the "process and intention" to it.
There have been a lot of upside down urinals in the world before Duchamp did that, yet nobody considered it art. Here again the intention matters. Matrix multiplications on big data don't have any intention.
Regarding Duchamp's Urinal, the intention and the critique it voices is critical for being considered art (and a lot of people still argue about it). https://www.bbc.com/culture/article/20170410-the-urinal-that...
There have been a lot of upside down urinals in the world before Duchamp did that, yet nobody considered it art. Here again the intention matters. Matrix multiplications on big data don't have any intention.