AI generated image ownership

Can i use ai generated images for client commercial projects ?

Depends on the licensing of the AI generator.
Read the EULA.
Then proceed with caution. I’ve seen many an AI that has grabbed something totally recognizable to build on. One reverse search I did even came back as a Getty image. Getty is rabid about being paid. Whether you know you used their stuff or not.

And ask the client. Some clients will say “absolutely not.”

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What if I retouch and edit the image and add different design elements on it ?

Altering an image in anyway doesn’t change the copyright holder.

Altering an image again depends on the license. You are creating a derivative work, no matter how little or how much you change it. If the licensing doesn’t allow that, pay for the image properly and be done with it.
Note: Even Creative Commons has different levels of usage and they recently changed. So be professional.

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