Is there a paper about it? I have read about similar approaches: https://arxiv.org/pdf/2305.20030.pdf

How about self hosted open source image generating AI, or if there are non cooperative players who they have no power to force it’s usage upon.

That’s the case that I see that will be the problem. Of course people with agenda will not use compliant AI, but seek out “black market” versions of image generating AI.