If I recall correctly, the copyright holders can decide what they want to happen automatically.
The automatic options are something like:
- Disable all ads.
- Enable ads (if disabled) and take all (?) money.
- Mute/remove the infringing content.
They can also do stuff like issue copyright strikes but I believe that those have to be done manually since they can be so destructive to creators.
Tom Scott made a really good video about how copyright works in general and how it works on YouTube, I highly recommend it. https://youtu.be/1Jwo5qc78QU
YouTube videos actually have transcripts now.