I feel that's the opposite of the toupee fallacy. The lack of labelled excellent AI fiction supports the idea that there's a lot of excellent fiction that was written by largely by AI but nobody was able to identify it as AI, because they were looking for writing that makes them vomit.
Regardless, how about this: https://deadline.com/2026/07/ai-questions-debut-novel-book-f...
Maybe that debut novel is amazing, but the fact that we are even discussing whether it’s AI or not tells me it might not be - in any case we can’t read it yet to judge ourselves - just that publishing agents are completely out of touch. If it were truly great I don’t think anyone would care, since hey, good writing is good writing, no matter where it comes from. We would just read it and enjoy.
Similarly models are for fact able to produce music and images that are very difficult to differentiate from meat made, but still… Most people don’t like them. Something seems always a bit off, kinda artificial and boring. Lack of imagination, lack of authenticity, lack of voice.