I still wouldn’t believe it. Even the 404 article does not confirm anything and the ad company does not provide any details.

This whole thing feels like marketing, claiming something outrageous to get people talking about your company.

Not THE original, but a larger image and an explanation.

https://alchetron.com/Provo-(movement)

I believe the difference is how old the original artworks are. Someone copying the style of Mozart is appreciating his music, but someone copying a modern day musician is just breaking copyright law.
You can be inspired by Picasso or even Bob Ross, but you are copying/tracing an artist from Tumblr.
In a way AI is just pastiche, but frownd upon.

The article does not mention, how will this be achieved technology wise? I don’t know of any universal way that a government might activate these features on a person’s phone. Unless network operators/phone manufacturers start installing backdoors. This does not bode well.