The Hidden Legal Risks of Using Freelance AI Content in Your Business

The Hidden Legal Risks of Using Freelance AI Content in Your Business
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IndustryTrends
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Freelancers are using AI tools to create content faster, but the legal risks that follow remain widely overlooked. Small businesses that accept AI-assisted work without legal protections expose themselves to copyright disputes, liability for misinformation, and uncertainty over ownership. Understanding how these risks arise and how to manage them helps prevent future conflicts and protects the business from legal exposure.

Is Freelance AI Content Exposing You to Copyright Claims?

Yes, freelance AI content is exposing businesses to copyright claims, as several companies have already faced legal action for publishing AI-generated material that mirrors copyrighted work. Getty Images sued Stability AI for using millions of its photographs without permission to train an image-generation tool. The New York Times filed a lawsuit against OpenAI and Microsoft for using its articles to train language models. These examples show that AI content, even when modified or rephrased, still carries the risk of infringement.

When freelancers use tools trained on third-party content, and those outputs get reused without verification, the risk transfers to the business that publishes it. Without a contract assigning responsibility, the legal burden falls on the company using the content.

Are Your Contracts Addressing the Use of AI Tools?

No, most contracts do not address the use of AI tools, and this lack of language creates uncertainty and legal vulnerability. A 2024 report from the Association of Freelance Professionals showed that fewer than 15 percent of freelance agreements include any mention of AI or content automation. Businesses that accept deliverables without clarifying how content is created leave themselves open to disputes over originality, usage rights, and ownership.

A dispute in 2023 between a marketing firm and a freelance writer illustrates this issue. The writer used AI to generate content, which the firm later discovered matched phrasing from a competitor’s website. Since the contract included no clause requiring originality or disclosure of AI tools, the firm had no legal grounds to claim a breach. It was forced to take down the material and issue a public correction. The absence of AI-specific terms left the business without leverage or recourse.

How Should AI Use Be Handled in Agreements?

AI use should be handled in agreements by including clear contract clauses that define whether AI is allowed and who is responsible for verifying the content’s origin. Legal review of these terms helps prevent confusion about authorship and accountability. These clauses should specify originality requirements, shift liability to the contractor when applicable, and state whether machine-assisted outputs are acceptable under the agreement.

Can Businesses Be Held Responsible for False or Misleading Claims?

Yes, businesses can be held responsible for false or misleading claims in AI-generated content, even if the material was created by a third party. In a well-known case, Air Canada was found liable after a chatbot provided incorrect information about refund eligibility. The court held the airline responsible for the content of its automated system. Similar liability applies when businesses publish freelance content containing inaccurate or misleading information without disclaimers or editorial review. For updates on emerging risks tied to AI, content responsibility, and evolving regulations, reviewing trusted legal news sources helps businesses stay informed and avoid similar missteps.

Another relevant example is the 2023 case involving an insurance blog that included AI-generated content suggesting policyholders had rights they legally did not. After a claim denial, a customer used the article as a reference when challenging the insurer. While the article was not the only factor in the decision, it did prompt a regulatory inquiry into misleading consumer information. The business was required to revise its publishing standards and introduce a formal review process to avoid future infractions.

What Terms Reduce Legal Risk in Freelance Agreements?

The terms that reduce legal risk in freelance agreements include clear language on authorship, originality, liability, and the use of AI tools. Agreements that define these areas in advance help prevent disputes over copyright, misinformation, or ownership and protect the business if problems arise after publication. If you’re unsure where to begin, reaching out to attorneys near me can help guide your next move.

Add these provisions to reduce risk:

  • Disclosure of AI Use: Require freelancers to confirm whether AI tools were used in any part of the work. This avoids confusion over authorship and ensures the business knows how the content was created before publishing.

  • Ownership and Rights: Define that all final content belongs to the business once paid for, regardless of how it was created. This prevents later disagreements over who controls the material or where else it can be used.

  • Liability Shift: Assign responsibility to the freelancer for copyright violations or unverified claims within the content. If the content leads to legal trouble, this clause helps shield the business from being held accountable.

  • Originality Assurance: Include a statement guaranteeing that the content is not copied, scraped, or auto-generated from another source. This ensures the freelancer takes full responsibility for submitting unique and lawful material.

These terms create a shared understanding between parties and protect the business from being held accountable for oversights that stem from how the content was produced. They also ensure that any issues arising from external claims or takedown notices fall on the party most capable of addressing the problem.

Does AI Content Require Legal Review Before Publication?

Yes, AI content requires legal review before publication, to confirm that the contracts reflect how content is currently produced and to reduce exposure to third-party claims. Many freelancers now use AI to support their writing, but businesses still rely on outdated templates that do not cover new technology. A legal review ensures that all parties understand who is responsible for what and that any gray areas are resolved before the content is published.

The risk is not theoretical. In 2023, an e-commerce business came under scrutiny after publishing AI-generated product descriptions that included unverified medical claims. A consumer filed a complaint, and the company was required to take down the product and pay a regulatory penalty for misleading advertising. Had the content been reviewed or properly disclaimed, the outcome could have been avoided. Legal review at the final stage protects both the business and its reputation.

Final Thought

Freelance AI content presents real value and real risk. Businesses that use this content without legal clarity increase their chance of being sued, penalized, or de-platformed. Contracts that account for AI use and legal review procedures protect more than brand reputation. They protect daily operations and long-term stability. When questions around authorship, liability, or originality surface, experienced attorneys help resolve them before they become legal threats.

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