Prosecraft has infuriated authors by using their books without consent – but what does copyright law say?; The Conversation, August 9, 2023

In Australia, the use of books for parody or satire is allowed under fair dealing exceptions, but there is no specific exception for transformative use. It is not clear whether the use by Prosecraft or Shaxpir would be considered fair dealing. Australia's laws are less friendly towards AI compared to the US, and authors hope that by stopping the shadow library, they can limit the impact of AI technology.

https://kipcurriercopyright.blogspot.com/2023/08/prosecraft-has-infuriated-authors-by.html