A federal appeals court says decades-old Supreme Court precedent forced it to protect the in-home possession of AI-generated child sexual abuse material, as judges warned that rapidly advancing technology has complicated legal lines drawn nearly 25 years ago.

The ruling exposes a widening gap between Supreme Court precedent and rapidly advancing artificial intelligence. The Seventh Circuit said it was bound by a 2002 Supreme Court decision that rejected restrictions on sexually explicit depictions of fictional children when no actual child was involved in their creation. But two judges warned that modern AI can now generate images virtually…

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