This is the current guideline for fan work creators that are outlining the guidelines for creators who want to share/sell and make works.
Not everyone follows them as there isn’t a group of lawyers ZUN has poking at everything (except for a case of this site and other things) , but if it was AI it probably constitutes as infringement on other properties due to the training on artist’s works without permission. (Scrapping from sites like Danbooru or others)
People in the Touhou Project fan base frown upon anything that isn’t approved by ZUN or has been negatively related to piracy or anything similar. (This for a case by case basis as some people are fine with it if you label it as AI)
ZUN himself HATES AI and probably would stipulate a new rule specifically about AI if he decides the guidelines needed an update though none have been made since 2020.
If you are thinking about this site then it probably is fine as there isn’t a lot of moderation except for serious cases of someone being too disruptive.
Just label it as AI generated so people know that it is so they won’t be confused about who made it.
On one of latest interviews ZUN talked a lot about AI. For him AI quickly becomes boring after you start using it. ZUN prefers to create things himself. He thinks that the end of technology is AI. He also thinks that the world would have to fight AI, but at the same time he thinks that AI may be used for good things. So he is not that against the AI.
What about community opinion?
Opinion of Japanese fans about AI is mostly not positive. AI art do not get a lot of attention. They mostly don't think that AI art is fun. People blame some doujin circles for being AI tracers(I don't know if they are really AI tracers). As Reitisen noticed the guideline says nothing about AI, that is why even some Japanese fans get confused and some people think that fanworks with AI are fullyallowed. So a lot of people don't have a positive opinion about AI, but don't think that it is prohibited.
So as Reiteisen said, just warn about using AI in your fanwork.
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