AI Hallucinations & Haunted Brands: The Legal Risks of AI-Generated Content This Halloween 🎃

As the nights grow darker and the pumpkins glow brighter, businesses are embracing spooky season with themed campaigns, eerie visuals, and clever marketing tricks. But in the age of Artificial Intelligence, some of those tricks might come with legal treats you didn’t bargain for.

This Halloween, we’re unmasking the legal risks lurking behind AI-generated content. When your brand relies on bots to conjure up creative assets, you might be inviting more than just ghosts into your strategy.

Copyright Infringement: The Phantom of the Prompt

AI tools often generate content by analysing vast datasets, including copyrighted works. If your Halloween campaign features AI-generated poems, posters, or taglines that echo existing material, you could be facing a copyright claim under the CDPA 1988.

Spooky scenario: Your AI writes a horror story that closely resembles a Stephen King plot. You publish it. He (or more likely his legal team) notices.

Trade Mark Trouble: Branding Spells Gone Wrong

Using AI to create Halloween-themed branding? Beware of trade mark infringement. AI might accidentally include protected logos, slogans, or even character likenesses (think witches that look suspiciously like Disney’s Maleficent).

Legal tip: Always check your AI-generated assets for hidden branding, especially in metatags or SEO copy.

Defamation: When AI Hallucinates a Villain

AI hallucinations aren’t just creepy; they can be legally dangerous. If your AI tool generates false or misleading content about a competitor or public figure, and you use it in a campaign, you could be liable for defamation.

Confidentiality: Don’t Feed the Vampire

Uploading sensitive business data into AI tools can be like feeding a vampire, it might not come back. If your Halloween campaign involves internal strategy or client data, make sure your AI platform is secure and compliant with confidentiality obligations.

Best practice: Use enterprise-grade AI tools and avoid uploading anything you wouldn’t want to see in the wild.

Consumer Protection: AI Washing Is the New Zombie Trend

This season, beware of AI washing, overhyping your use of AI to sound cutting-edge. Under the DMCCA 2024, misleading claims about AI capabilities (or greenwashing) can lead to enforcement action.

Marketing misstep: Claiming your Halloween chatbot is “powered by advanced AI” when it’s just a rule-based script? That’s a zombie claim, dead on arrival.

Bias & Misinformation: The Curse of the Training Data

AI-generated content can reflect biases buried in training data. If your Halloween campaign includes AI-generated costumes, characters, or cultural references, make sure they’re respectful and inclusive.

Risk: Unintended stereotypes or offensive tropes could lead to reputational damage, or worse, legal complaints.

UGC & Copyright: Trick-or-Treating with Fan Content

Using user-generated content (UGC) in your Halloween campaign? Make sure you have the rights. A fan might upload a spooky photo featuring copyrighted elements, and if you repost it, you could be liable.

Tip: Always get permission before using UGC commercially, even if it’s shared on your brand’s social media.

 What Businesses Can Do

To reduce risk and maximise value, businesses should:

• Create AI usage policies for staff and contractors
• Use content clearance checklists for marketing and advertising
• Choose secure, enterprise-grade AI platforms
• Include IP and data protection clauses in contracts with AI vendors
• Train teams on ethical and legal use of AI tools

How We Can Help

We can play a key role in helping you and your business use AI confidently. Support may include:

• Drafting or reviewing AI usage policies
• Advising on copyright and trade mark clearance
• Reviewing marketing claims for compliance with consumer law
• Providing contractual protections for AI tool use
• Offering training sessions on legal risks and best practices
• Monitoring regulatory developments and updating clients

Contact our Commercial & IP team if you need any advice!

Conclusion: Don’t Let AI Haunt Your Brand

AI-generated content can be a powerful tool for seasonal campaigns—but it’s not without its legal ghosts. This Halloween, make sure your brand isn’t haunted by:

• Copyright claims
• Trade mark disputes
• Defamation risks
• Confidentiality breaches
• Consumer protection violations
• Bias backlash
• UGC copyright traps

Stay safe, stay smart and keep your AI tricks legally treat-worthy.