You need to read the article.
Factory Farms aren't making the AI images, researchers are. The complaint, apparently, is that AI image generators aren't trained on enough animal cruelty to realistically depict a modern slaughterhouse.
This is a problem because the author of this article thinks that in the future, people will rely on AI image generators to understand the world around them, and honestly, if that's already the assumption, then we are cooked.