From a Business’ Perspective

Artificial intelligence is no longer just a buzzword — it’s a powerful tool shaping how businesses create content, design visuals, and engage with audiences. From AI-generated graphics to marketing materials, companies are embracing automation for speed and efficiency. But this new creative frontier raises a critical legal and commercial question: who owns the copyright in AI-generated art?

Copyright and Creativity in the Age of AI

Copyright law is designed to protect original works created by humans. Traditionally, the author is the one who contributes skill and effort to bring a piece of work into existence. AI challenges this definition. When a business uses a prompt to generate an image, the heavy lifting is done by the algorithm, not the person. This creates uncertainty about whether the output belongs to the user, the developer of the AI system, or if it qualifies for copyright protection at all.

What Malaysian Law Says

In Malaysia, the Copyright Act 1987 requires originality and human effort for copyright protection. A simple AI-generated output may not satisfy these criteria. However, if your business takes that AI draft and substantially reworks it — for example, refining a logo concept or enhancing a design for a campaign — the modified version could qualify as a protected work. Currently, Malaysian courts have not explicitly ruled on AI authorship, leaving companies in a legal grey area.

Global Approaches to AI Copyright

Some countries are already testing new interpretations. The United Kingdom, for instance, recognises computer-generated works by attributing authorship to the person who made the arrangements necessary for creation. While this provision helps, it still leaves room for interpretation: is the “arranger” the AI tool’s developer, or the end user? For international businesses, this patchwork of rules means copyright protection may differ from one market to another.

Why Businesses Should Care

For companies, copyright is not just a legal formality — it is a business asset. Without clarity, your marketing visuals, branding, or even product designs generated with AI may be vulnerable. You may not be able to stop competitors from copying your AI-generated work, or you could face challenges if your design unintentionally resembles someone else’s copyrighted material. This uncertainty can affect brand reputation, licensing opportunities, and long-term creative strategy.

Practical Steps for Businesses Using AI

Until the law catches up, businesses can take steps to protect their interests:

• Add human creativity: Treat AI outputs as drafts, then refine them with meaningful human input.
• Document your process: Keep records of prompts, edits, and design decisions to show human involvement.
• Review licensing terms: Understand what rights your AI platform grants you — some tools allow commercial use, while others impose restrictions.
• Seek legal advice: When using AI for high-value projects like branding or product design, consulting an IP lawyer can help safeguard your investment.

The Future of AI and Copyright

AI-generated art is here to stay, and businesses are only beginning to unlock its potential. However, the law is still catching up. Companies that balance automation with human creativity will be in the strongest position — not only legally but also in producing work that feels authentic and resonates with audiences. As regulations evolve, businesses that stay informed and proactive will protect both their creative output and their competitive edge.