I run a print-on-demand business selling t-shirts and mugs with AI-generated designs, and I want to share some real-world experience that goes beyond the legal theory discussed above.
Practical issue number one: marketplace policies. Even though OpenAI says you own the images, some marketplaces have their own rules. Etsy updated their policy in late 2025 to require disclosure of AI-generated content in listings. Amazon Merch has been inconsistent -- some sellers report no issues, others have had listings pulled. Redbubble explicitly allows AI art but requires the "AI-generated" tag. Always check each platform's current policy.
Practical issue number two: the copyright registration question. If you cannot register copyright on purely AI-generated images (per the Copyright Office's current position), you also cannot send DMCA takedowns if someone copies your design. I have had multiple designs stolen and reposted on competing stores, and without a copyright registration, my options are limited. This is the real business risk that people overlook.
My workaround: I use DALL-E or ChatGPT to generate a base image, then I do substantial editing in Illustrator -- adding custom typography, adjusting composition, layering multiple elements, changing color palettes. This level of human creative input strengthens the argument for copyrightability of the final work. I keep detailed records of my editing process for each design.
@freelance_designer_2025 is right about post-processing being important, but I would go further and say it is practically essential if you are building a business around these images. The raw AI output is your starting point, not your final product. That approach also addresses the duplicate image concern -- your edited version is unique even if someone else generates a similar base image.