09/07/2026
A federal appeals court has upheld the dismissal of a Wisconsin man’s charge for privately possessing AI-generated CSAM raising serious concerns about whether existing laws can keep up with rapidly advancing AI.
Steven Anderegg, 42, of Holmen, Wisconsin, was arrested in 2024 after federal investigators alleged that he used the AI program Stable Diffusion to create thousands of realistic images depicting children being sexually abused. Prosecutors also alleged that he sent AI-generated images to a 15-year-old boy through Instagram.
On August 25, the 7th U.S. Circuit Court of Appeals upheld the dismissal of the possession charge, ruling that existing Supreme Court precedent protects the private possession of certain AI-generated images when they do not depict real children.
The judges acknowledged that AI has dramatically changed the landscape, noting that it can now create images of fictional children that are “virtually indistinguishable” from images depicting actual abuse.
They expressed concerns about the limits of existing precedent but said a lower court cannot rewrite Supreme Court rulings.
Importantly, the ruling did not dismiss all charges against Anderegg. He still faces charges involving the alleged production and distribution of the AI-generated CSAM and allegedly transferring it to a minor.
The case highlights a disturbing legal gap: AI can now generate extremely realistic CSAM without an actual child being photographed or physically abused in creating the image.
If you're tired of people not being properly held accountable when they harm kids, make sure to sign the petition to end easy plea deals for child predators, linked in my bio and at change.org/endpleadeals.
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