While proponents of artificial intelligence (”AI”) paint an idyllic picture of how the groundbreaking technology is poised to eliminate the ills plaguing society, their unbridled optimism continues to be met with skepticism by their opponents. From fears over the economic repercussions of the rapid loss of jobs that advancements in AI may not be able to outpace to the technology’s applications as the framework for the apparatus of a panopticon surveillance state, concerns over the impact of AI mar the utopian vision its advocates have with an even more dystopian outlook of the future it will usher in. A look inside of the Pandora’s Box being opened by AI was glimpsed following a decision by a federal appeals court ruling in favor of protecting AI-generated child pornography.
On August 25th, 2026, the U.S. Court of Appeals for the 7th Circuit ruled thatthe First Amendment protects an individual’s right to privately possess images and videos of child sexual abuse created using AI, so long as the child sex abuse material (”CSAM”) does not depict a real child and remains in the privacy of the possessor’s home. The federal appellate court issued the unanimous ruling from a panel of three U.S. circuit judges: Judge John Z. Lee, Judge Doris L. Pryor, and Judge Joshua P. Kolar. The case came to the court in the matter of U.S. v. Anderegg, a title that now stands poised to challenge longstanding Supreme Court precedent governing how the law addresses CSAM.
The pivotal case centers on Steven Anderegg, 42, of Holmen, Wisconsin. Anderegg was arrested in May 2024 on suspicion of mass production of AI-generated CSAM. Prosecutors alleged that he used an AI image generator called Stable Diffusion to create over 13,000 images depicting child sex abuse by entering prompts into the platform, including thousands of realistic images of prepubescent minors. In a press release announcing his arrest, the U.S. Department of Justice revealed Anderegg described how he created the AI CSAM through the text-to-image generative AI model in a chat with a 15-year-old boy on the social media platform Instagram. The DOJ press release chronicled how Anderegg not only described how he generated the images to the minor, but that he sent the boy several AI-generated images of minors displaying their genitals. Following their exchange, Instagram reported Anderegg’s account to the National Center for Missing and Exploited Children (”NCMEC”) through its CyberTipline. The NCMEC followed suit by alerting federal authorities.
On May 15th, 2024, a federal grand jury in the Western District of Wisconsin returned an indictment against Anderegg, charging him with producing, distributing, and possessing obscene visual depictions of minors engaged in sexually explicit conduct and transferring obscene materials to a minor under the age of 16. Under those charges, Anderegg faces a maximum penalty of 70 years in prison and a mandatory minimum of five years.
Ahead of his trial originally scheduled to begin on February 18th, 2025, Anderegg’s attorneys filed a motion to dismiss the four counts brought against him on September 23rd, 2024. His defense counsel cited a myriad of federal cases in support of their argument that the statutes Anderegg was charged under were unconstitutional because the AI CSAM he created, possessed, and shared did not depict any actual children, thus the charges violated his rights under the First Amendment.
Hellbound and Down 