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Ao3 is already in a grey area when it comes to intellectual property and who owns the rights to the work and the Organisation for Transformative Works defends fanfiction against legal challenges by ensuring that all work published is entirely original, something which AI does not fulfil. Even when tagged correctly, putting AI content on Ao3 (including AI-generated pictures and writing) harms the platform. To put it simply, when not disclosed it is plaigarism. When disclosed it is not written by a human and therefore isn't allowed on the platform.