re: What should be their punishment?

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I would definitely support the law.

I’m no lawyer… but I think it presents challenges from a prosecution standpoint. Such as, how closely does the depiction in the video have to resemble the supposed victim? Who decides if it “looks like” that person?

For example: hypothetically, a high school kid created an adult video or image depicting a blonde person about the same age.
Some say it depicts a classmate, but person who created it says, “it’s an entirely fictitious person who is just similar to that person”.

How do you prove if it was meant to be that person? Who decides if the AI creation is close enough to say it depicts that person?

Another point- “with intent to cause psychological or reputational harm…”
It’s hard to prove a person’s intent, absent other corroborating evidence like a witness telling you, “they told me they were doing it to hurt that person”. Etc.

It’s just tough to prove. But I certainly think we have to set precedents and laws…

I’d be in support of a law that very clearly says, if using AI to create adult/nude content is a crime….
There is enough of that already out there, without AI…

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All fair points, that's why the debate around the philosophical questions of how to regulate the rise in realistic AI video generation is so interesting.

There's a strong interest in the protection of free speech, no matter how vile, but there is also a strong governmental interest in protecting people from vile, false depictions of their person and character, especially minors.

The next 5-10 years of legal development around this topic will be interesting when you consider the amount of lawmakers and judges that are completely out of touch with technology, don't want to appear weak on crime, and receive donations from the tech sector.