Misleading title. This isn't an "AI Company". As far as I can tell, it's some scammer that used AI Tools to create similar music and then copyright strike the original artist to steal their revenue.
The major issue here is how YouTube handles these claims. From the article:
YouTube’s dispute process places enormous trust in whoever files the claim, with little built-in protection for independent artists who lack legal resources.
This isn't something new and was already being done before AI tools were available.