Legal Primer: Contracts, Deliverables, and AI-Generated Content for Illustrators

As generative tools enter creative workflows, contract language needs to catch up. This primer offers accessible guidance for illustrators and small studios to negotiate contracts, define deliverables, and responsibly manage AI-generated content within common client scenarios.

Key Contract Elements to Review

Look for or include explicit clauses on:

• Rights Granted: Specify whether the client receives exclusive rights, limited licenses, or full assignment. Define whether the scope includes derivatives and future media.
• Use of Third-Party Tools: Clarify whether you may use third-party AI tools and whether the client requires disclosure.
• Warranties and Indemnities: Most illustrators should avoid broad warranties about non-infringement for AI-assisted outputs without an indemnity from the client.

AI-Specific Clauses

Consider adding a short AI addendum that covers:

1. Which models or categories of models may be used.
2. Attribution expectations and whether the client can request proof of provenance.
3. Responsibility for claims of third-party rights violations and remediation steps.

Disclosure and Transparency

Transparency builds trust. Offer a standard disclosure stating that AI tools may be used for ideation or texturing, and provide options for clients who prefer purely hand-made work with adjusted pricing.

Pricing and Scope Creep

Clearly delineate rounds of revisions, asset types, and file formats. If AI-driven ideation yields many concepts, set limits or charge per set of concepts to avoid scope creep.

When to Consult an Attorney

Seek legal counsel when:

• Clients demand full assignment of rights for work that includes AI-generated components.
• You are dealing with large-scale enterprise contracts with broad indemnity requirements.
• There is a potential legal claim regarding dataset provenance or likeness rights.

Simple Contract Language Examples

We suggest plain-language clauses such as a clause that allows use of third-party tools with the artist responsible for maintaining records and providing provenance logs on request. Another example is an explicit carve-out stating that outputs that incorporate third-party elements may be licensed rather than fully assigned unless additional fees are paid.

Operational Best Practices

• Keep model names, versions, and prompts recorded per asset.
• Store records of the revision history and approvals.
• Offer clients an option for AI-free deliverables with adjusted timelines and fees.

Closing Advice

Contracts should reduce ambiguity. By proactively addressing AI in your agreements, you protect your practice and enable clients to make informed choices. When in doubt, consult counsel, especially for high-value or risky assignments.