Introduction

Artificial intelligence (AI) has transformed the way digital images and videos are created. While AI has many legitimate uses, such as graphic design, marketing, education and entertainment, it has also created new opportunities for criminal misuse.

One of the fastest-growing concerns is the creation and distribution of AI-generated sexual images, including realistic “deepfake” images and videos depicting individuals in intimate or explicit situations that never actually occurred.

Australian governments have responded by introducing new criminal laws designed to protect individuals from image-based abuse and the non-consensual creation and distribution of sexually explicit AI-generated material. These laws are particularly severe where children are involved, but adults are also protected from many forms of AI-generated image abuse.

Many people wrongly assume that because an image is “fake,” it cannot be illegal. That assumption is increasingly incorrect.

This article explains Australia’s new criminal laws relating to AI-generated sexual images, when criminal liability may arise, the penalties involved, and what you should do if you are accused or become the victim of this type of offending.

What Are AI-Generated Sexual Images?

AI-generated sexual images are digitally created or manipulated images or videos that appear to depict a real person in sexually explicit or intimate situations.

They may include:

• Deepfake pornography
• Digitally altered photographs
• AI-generated nude images
• AI-generated explicit videos
• Face-swapped sexual content
• Computer-generated intimate images.

Modern AI software can produce images that appear highly realistic, making it difficult for viewers to distinguish between genuine and fabricated material.

What Is a Deepfake?

A deepfake uses artificial intelligence to replace or manipulate a person’s face or body in an image or video.

Examples include:

• Placing someone’s face onto another person’s body
• Creating fake intimate videos
• Altering genuine photographs
• Producing realistic sexual content involving identifiable individuals.

Even if the underlying image is entirely computer-generated, legal consequences may arise where an identifiable person is depicted.

Why Have New Laws Been Introduced?

AI technology has developed far more quickly than traditional legal frameworks.

Victims have experienced significant harm, including:

• Emotional distress
• Reputational damage
• Workplace consequences
• Relationship breakdowns
• Online harassment
• Blackmail
• Extortion
• Cyberbullying.

Governments have introduced stronger criminal offences to better protect individuals from these emerging forms of digital abuse.

AI Images of Adults

Creating or distributing AI-generated intimate images of adults without their consent may amount to criminal offending depending upon the circumstances.

Possible offences include:

• Image-based abuse
• Using a carriage service to menace, harass or offend
• Stalking or intimidation
• Blackmail
• Extortion
• Domestic violence offences.

The law focuses on the harm caused rather than simply whether the image is genuine.

AI Images Involving Children

The law is considerably stricter where children are involved.

AI-generated sexual images depicting children may amount to child abuse material, even where no actual child participated in creating the image.

This reflects Australia’s strong commitment to protecting children from sexual exploitation.

Offences may include:

• Producing child abuse material
• Possessing child abuse material
• Accessing child abuse material
• Distributing child abuse material
• Using telecommunications services to commit child exploitation offences.

These offences carry extremely serious penalties, including lengthy terms of imprisonment.

Does It Matter That the Image Is Fake?

No.

One of the most common misconceptions is that a fabricated image cannot be illegal.

In many situations, the law is concerned with:

• The apparent depiction
• The intended use
• The harm caused
• The exploitation involved
• The identity of the person portrayed.

Accordingly, the fact that artificial intelligence created the image will not necessarily prevent criminal liability.

Sharing AI-Generated Images

Criminal liability is not limited to the person who creates the image.

Offences may arise from:

• Sending the image
• Uploading it to social media
• Sharing it in group chats
• Emailing it
• Forwarding it
• Publishing it on websites.

Simply forwarding an unlawful image can expose an individual to criminal investigation.

Using AI Images for Blackmail

Some offenders create AI-generated sexual images and then threaten to publish them unless the victim:

• Pays money
• Continues a relationship
• Withdraws complaints
• Performs sexual acts
• Provides further photographs.

Such conduct may amount to:

• Blackmail
• Extortion
• Stalking
• Intimidation
• Image-based abuse.

These offences attract substantial criminal penalties.

Cyberbullying and AI

AI-generated sexual images are increasingly used in cyberbullying campaigns.

Examples include:

• Creating fake intimate images of classmates
• Humiliating work colleagues
• Targeting former partners
• Harassing public figures
• Sharing fabricated content online.

The psychological harm caused can be significant, even where viewers later discover the images were artificially created.

Police Investigations

Police investigating AI-generated image offences may obtain evidence including:

• Mobile phones
• Computers
• Cloud storage
• Social media accounts
• Internet history
• AI software records
• Metadata
• Search warrants
• Witness statements.

Digital forensic specialists can often recover deleted files and identify how images were created and distributed.

Possible Penalties

Penalties vary depending upon the offence committed.

Possible outcomes include:

• Criminal convictions
• Good Behaviour Orders
• Community Correction Orders
• Intensive Correction Orders
• Fines
• Imprisonment.

Where child abuse material offences are involved, imprisonment is commonly available and penalties are significantly higher.

Possible Defences

Every criminal matter depends upon its own facts.

Potential legal issues may include:

• Identity disputes
• Lack of knowledge
• Lack of possession
• No intent to distribute
• Insufficient evidence
• Mistaken identity
• Unauthorised access to devices.

An experienced criminal lawyer can assess whether the prosecution is capable of proving every legal element of the alleged offence.

What Should You Do if Police Contact You?

If police contact you regarding AI-generated images:

• Remain calm.
• Do not delete files or devices.
• Do not attempt to alter online accounts.
• Avoid discussing the allegations online.
• Exercise your right to obtain legal advice before participating in a police interview.
• Do not consent to interviews without understanding your legal rights.

Obtaining legal advice at the earliest opportunity may significantly affect the outcome of an investigation.

What Should Victims Do?

If you discover AI-generated sexual images depicting you:

• Preserve screenshots.
• Save website links.
• Record usernames.
• Report the content to the relevant platform.
• Report criminal conduct to police.
• Seek legal advice immediately.
• Consider obtaining counselling or support services where appropriate.

Quick action often improves the prospects of removing unlawful content before it spreads more widely.

Why Early Legal Advice Matters

AI-related criminal investigations often involve complex digital evidence and rapidly evolving legislation.

Early legal advice can help:

• Protect your legal rights
• Preserve important evidence
• Respond appropriately to police
• Minimise further distribution
• Develop an effective defence where appropriate.

Whether you are accused of creating AI-generated images or are the victim of image-based abuse, obtaining prompt legal advice is essential.

How Aquarius Lawyers Can Help

Aquarius Lawyers acts for clients throughout Australia in matters involving cybercrime, digital evidence and criminal investigations.

Our criminal law team can assist with:

• Police interviews
• AI-related criminal allegations
• Image-based abuse offences
• Commonwealth cybercrime investigations
• Child exploitation allegations
• Stalking and intimidation matters
• Court representation
• Appeals.

If you have been accused of offences involving AI-generated images or have become the victim of digital image abuse, contact Aquarius Lawyers for confidential legal advice tailored to your circumstances.