Actually, I find that the early investigations of AI-generated (Open AI Jukebox, specifically) pop by a few vaporwave producers is pretty interesting. For one thing, it eliminates the copyright law worries. But more importantly, it provides a sort of template in which there's certain known factors that appear in the result while, at the same time, it also features loads of uncanny valley-type results that are more difficult to predict. As such, it still acts very much like a "proper musical instrument" since it has its own variants on leaky pads, sticky valves, or a gnat down your throat due to the nature of the process.
As for the "is it artistic" point...well, consider this: an AI algorithm is just as capable of being a "composition" as is a score by Mahler, et al. The architecture is very different...but I was always taught that creating a scored work is very much analogous to writing program code. The "computers" might be different, but the underlying cybernetic process is essentially the same.