Judge Dismisses AI Child Abuse Image Charges on First Amendment Grounds

A federal judge has dismissed criminal charges against a Wisconsin man accused of creating thousands of AI-generated images depicting child sexual abuse, ruling that such material falls under First Amendment protection when it does not depict actual children.

Judge John Z. Lee of the U.S. Court of Appeals for the 7th Circuit granted the motion to dismiss charges against Steven Anderegg, 42, who was arrested in 2024. According to the Department of Justice, Anderegg used Stable Diffusion, a text-to-image generative AI model, to create realistic images showing children in sexually explicit situations. Prosecutors alleged he also sent some images to a 15-year-old boy and explained his creation process.

The legal framework

In his August 25 decision, Lee cited two Supreme Court precedents that bound his ruling. The 1969 case established a right to possess obscene material in one's home, while a 2002 decision determined that sexually explicit material not depicting real children does not constitute child pornography and receives First Amendment protection.

The Justice Department had taken a firm stance when announcing Anderegg's arrest. Principal Deputy Assistant Attorney General Nicole M. Argentieri stated in May that "using AI to produce sexually explicit depictions of children is illegal," promising accountability for those who possess, produce, or distribute such AI-generated material.

Why it matters

This ruling exposes a critical gap between legal frameworks written before modern AI existed and today's technology capabilities. As generative AI models become more sophisticated, the distinction between virtual and real imagery—which forms the basis of current law—grows increasingly difficult to maintain. The decision forces a reckoning: either Congress must update statutes to address AI-generated material explicitly, or courts may continue applying precedents from an era when such technology was unimaginable. For technology companies developing generative AI tools, the ruling also raises questions about content moderation responsibilities and potential liability.

Judicial concerns about AI evolution

Despite ruling in Anderegg's favor, Lee expressed significant reservations about applying 25-year-old precedent to current technology. He noted that AI-generated images depicting child abuse have become "virtually indistinguishable" from photographs of real children.

"We now live in an age where GenAI models can render images depicting the abuse of virtual children that are virtually indistinguishable from those depicting the abuse of actual children," Lee wrote. "This case illuminates how this evolving technology complicates the lines drawn by the Supreme Court."

The judge acknowledged that image-generation technology available today "was likely unimaginable" when the Supreme Court established the relevant precedent. He stated that while he has "concerns about the lines these cases draw," he is not authorized to redraw them independently.

The details were first reported by Gray News and Live5News.