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Navigating AI in Production: What You Need to Know About Legal Risks and Copyright

 

AI is transforming video production, offering innovative ways to create content faster, cheaper, and at scale. However, as the industry embraces AI-driven tools, legal and copyright issues are coming into sharp focus.

The Advertising Producers Association (APA) has provided new guidance on how AI-generated content fits within standard industry contracts. If you're using AI in commercial production, it's essential to understand how this impacts copyright ownership and compliance.

 

AI and Copyright: The Key Issue

Under the standard APA/IPA/ISBA production contract, copyright in the final work is assigned to the commissioning party (agency/advertiser) upon payment. However, AI-generated content—especially when created using open AI systems—presents a challenge.

Most open AI platforms don’t assign copyright to the user. Instead, they grant a license to use the generated content, meaning production companies may not be able to fulfill their contractual obligation to transfer full ownership to the agency.

 

 
 
How to Ensure Compliance When Using AI

To navigate this issue, the APA suggests two potential solutions:

  1. Amend the Contract – The agency (and advertiser) can agree to modify the contract, allowing for a license rather than a full copyright assignment. This can be done by adding specific wording in Box J of the PIBS contract.
  2. Use a Closed AI System or Alternative Approach – If the agency requires full copyright ownership, productions should either:
    • Use closed AI systems that only process user-controlled inputs (ensuring copyright can be assigned).
    • Opt for non-AI methods to generate content that fully complies with the contract.

 

AI Training & Copyright Risks

Another key legal concern is that most open AI systems ingest user-generated content to improve their models. This means AI-generated work might be used as part of future AI outputs, which could be a problem for brands wanting exclusive rights to their content.

The APA highlights that while this risk is small (AI models don’t replicate full productions), it remains a point of concern for companies seeking to protect their intellectual property.

 

 
Avoiding Copyright Infringement When Using AI

The safest way to use AI without violating copyright laws is to avoid directly copying existing work. The APA advises:

  • Using multiple reference points instead of a single source.
  • Clearly documenting the creative process to demonstrate originality.
  • Avoiding AI prompts that instruct the system to replicate copyrighted material.

Final Thoughts: AI in Production is Here to Stay—But Proceed with Caution

AI is a game-changer for video production, but its legal implications must be carefully managed. By understanding the APA’s guidance and adapting workflows accordingly, agencies and production companies can harness AI’s benefits while staying compliant.

At BearJam, we’re committed to strategic, high-quality video production that aligns with best practices and industry regulations. If you’re exploring AI-driven production, let’s talk about how to do it right—without compromising on legal or creative integrity.

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