A US appeals court has ruled that a Wisconsin man cannot be prosecuted for *possessing* images of child sexual abuse created by artificial intelligence. The court upheld the dismissal of the possession charge, establishing a current legal gap regarding AI-generated content. While the man faced accusations of creating and storing the images, the ruling specifically addresses the act of possession alone. Separate charges related to the *production* of the images, their *distribution*, and allegedly sending them to a minor are still active and remain pending in court. This decision doesn't legalize such content, but highlights the novel legal challenges posed by rapidly advancing AI technology. The ruling suggests current laws may not adequately address the unique circumstances of AI-generated child sexual abuse material. This case sets a precedent that will likely influence future legal battles concerning AI-created illicit content.