This study discusses the legal challenges that arise through Al generated pictures, focusing on Getty Images v. Stability Al as a case study. In this case Getty Images alleges Stability Al through the use of photographs under the Getty Image licence to train its model committed Copyright Infringement. This study compares the copyright framework in Indonesia and The United States of America of digital works, putting an emphasis on the similarity and differences in handling Al as a case study. Both jurisdictions accept the same basic principals in copyright based on the treaty that both countries are a part of. However, they have differences in a couple of key aspects. Indonesia adopts a European view on copyright, where its purpose is to protect creators, included are the economical right and moral rights. USA on the other hand, takes a different approach, focusing on the protection of economical right through creative endeavours. Moreover, some notable differences in the protection of digital photographs can be found in the difference of the period of protection and the need to ask for permission of a photographs subject. This study provides an analysis on the use of fair use as a doctrine using case study. The analysis on the American legal framework will largely be based on Jurisprudence while on the Indonesian side it will be based on available codified law. This study suggests though the degree of transformation in image generation is debatable, commercially its effects on creators in the same market should be questioned. While on the Indonesian side, the researcher has found that there are implications of liability on Al companies morally and economically, Al companies could be held liable. This stems from the modification of works that diminishes Getty Images reputation as a company. The same could be argued economically where though brief, servers of Stable Diffusion is found to held copies of 12 Million Images belonging to Getty Images.