Anything is possible. But ...
For whose benefit would "still generating content" be for? Certainly not the pornstars. There is OnlyFans, Fansly, and LoyalFans for that. Also you are not going to see Erica Boyer, Trinity Loren, Rachel Ryan, Shyla Stylez, Candy Manson and August Ames or any other deceased pornstar in an AI generation.
Some pornstars have control over their image and likeness. If they don't, then they should make every attempt to have complete control over that aspect of their lives. Therefore, this too would tend to put a damper to your idea. Then substituting one pornstar for another would be misrepresentation and false, no matter how it is presented. Although deepfakes do still happen with AI porn. AI deepfakes could be stopped. Yes, with DMCA takedown requests, cease and desist letters, etc. and if those failed, then filing lawsuits.
As for the studios ...
Humans have to sign model releases. As well as signing documents under U.S. code section 2257 indicating that nothing adverse happened during the filming of the scene. If a studio did what you are describing there would be plenty of lawsuits going on. Think about it. It would throw all the 2257 restrictions that websites have into complete and utter chaos. Section 2257 rules are setup for the actors and actresses protection which, in and of itself, benefits the websites and networks as well. Places where the scene or photo gallery is housed.
Now it's bad enough that Mindgeek / Aylo / Pornhub faced human trafficking lawsuits because of the G-D-P incident. Not that they didn't deserve it for all the years of allowing stolen content onto their platforms (Pornhub mainly) but on the other free tube websites that they own as well. Thus taking revenue and website traffic from the content creator(s).
They also used their lawyers to fight cease and desist requests from content creators so that content would stay up on the free tube websites and platforms for an extended amount of time. Far past the cease and desist letter term request went. These are also called DMCA takedown requests. Content could and would still be up on the free tube platforms after two months, three months had gone by despite having a c & d letter in their possession. Cease and desist letters then became more strongly worded so that the content did come down when the revised c & d letter was issued. Almost immediately upon receipt.
Lastly and by the way, Mindgeek / Aylo owns approximately 96 percent to 98 percent of the free tube video market.