If the upstream project thinks there may be a potential problem with this, that is a problem in itself. Try not to get defensive about it, just pull the project and have another go at the problem in collaboration with upstream. Perhaps parts of the project and be useful for upstream? Perhaps another workflow could make the project better?
We all strive for better open data. I upstream feel there is a risk that automated uploads could be easier with this project, creating more boring work for them which is already enough of a problem, that animosity will be a net negative for everyone in this space. Technical solutions such as new tags or opt out schemes will not solve the problem.
The OSM community has had extremely clear rules around automated edits for most of its existence. Every experienced mapper has seen first-hand the sorts of problems they can cause. The fact that it's using AI in this instance does not give any sort of exception to these rules. To emphasize, there are already AI-assisted tools that are allowed,[0] this isn't a blanket application of "no AI ever," it's about doing so properly with the right community vetting.
Edit to add: To be clear, they have since taken steps to try to resolve the concerns in question, the discussion is ongoing. I suspect at the end of this we will get a useful tool, it's just off to a rocky start.
We all strive for better open data. I upstream feel there is a risk that automated uploads could be easier with this project, creating more boring work for them which is already enough of a problem, that animosity will be a net negative for everyone in this space. Technical solutions such as new tags or opt out schemes will not solve the problem.