AI and Copyright: What Indiana Businesses Should Know

Artificial intelligence is transforming the way Indiana businesses create content, design products, and manage data. From marketing departments using generative text and image tools to manufacturers using AI to develop product designs, the technology is rapidly expanding opportunities and efficiency. At the same time, it raises important questions about who owns AI assisted content and what legal risks come with using it.

Under current U.S. copyright law, only works created by human authors qualify for copyright protection. The U.S. Copyright Office’s 2023 policy guidance and its ongoing AI report reaffirm that purely AI generated material, without sufficient human creative input, is not eligible for copyright protection. Part 2 of the Office’s 2025 report on copyright and AI concludes that outputs from generative AI can only be protected where a human has determined sufficient expressive elements such as making creative choices in selection, arrangement, or modification of AI output.

This means that if a business relies on an AI tool to generate an image, slogan, or article with little or no meaningful human involvement, it may not own enforceable rights in the finished product. Competitors could potentially reuse or adapt that content without infringing copyright because the AI generated portions are effectively treated as being in the public domain. To strengthen ownership rights, businesses should treat AI as a tool that supports but does not replace human creativity and ensure employees or contractors make and document substantive editorial or design decisions.

There is also a growing risk of infringement claims. Generative AI systems are trained on large datasets that may include copyrighted works, and in some cases outputs can be similar to protected material. If AI generated content closely tracks an existing work, publishing or commercializing that content can expose a business to demand letters or lawsuits. Companies should use reputable vendors, review terms of use and training disclosures where available, and adopt internal review processes for AI assisted content.

Indiana businesses should incorporate these issues into their contracts and policies. Employment and vendor agreements should clarify ownership of AI assisted works, disclosure obligations, and who bears responsibility if a copyright dispute arises. As federal guidance and case law continue to develop, regularly updating internal policies and seeking legal advice can help Indiana companies capture the benefits of AI while managing these evolving copyright risks. If you have any questions or concerns on how this can impact your business, please call (317) 825-5110 to speak with one of our experienced Indiana intellectual property attorneys.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.