Who said romance genre could be formulaic?’

AI will be aping the human feel of books in no time, because all it needs to do is read all of them. Something we can't do. If no one stops this, all art is going to be gone in a very short time in favor of AI stuff that seems to "just nail it" every time. Melodies you just can't get out of your head, perfect plot lines with no holes. "Actors" that are handsome in just the right way.
I think the popular stuff will become A.I. generated. The vapid summer block buster will become cheaper to make, there will be personalization, there might be even a genre that crosses movies and games where each run of the show is different each time you watch it.

But stories that speak from individual experience will still stay and, as always, have a niche market/audience.
I don't know how good AIs are at "hiding" (by subtly changing) text they've had fed to them, but if they don't do that, you could end up with text from a well-known author (many of whom are now employing lawyers), albeit one whose work you may not have read, in one's own work, and thus being accused of plagiarism.

Oh, and if AIs are able to "hide" some (unbeknownst to you) text from a well-known author, you may inadvertently, in changing it to something better, recreate the original "stolen" text (and thus be accused of being a plagiarist).
They aren't, it's not the AI, it's the people. That's why we even found out, bad results both in image and text. Like I said, they work on word proximity, they know nothing of concepts per se. The hiding would be done by the tokens which are created by the owners. It's when they can't foresee the ramifications of their controls that the weird things happen.

token: "Promote inclusivity over skin tone and sex."
response: "Setup generation for a black man or Asian woman."
... but neglect (for some reason) ...
token: "Check statistics."
response: "0% black men or Asian women in that category."
token: "OK, find a white guy."

There's no other way to explain generating WWII 1943 German soldiers as black men and Asian women.

Now ask it to generate a section of a chapter dealing with a war scene with those criteria and controls.

But don't worry, they're trying to figure out how to be subtle about it. :) Everyone has an agenda, stay aware.
I remember talking to a colleague who earned a lot writing cheap romance novels: she says she takes out yellow pad and draws a triangle, and then portrays the characters in the relationship and what gets between them.