When Avery retired with a full pension and savings after 25 years of application development work for a financial institution, Avery: (i) went back to school to learn more about augmented reality and artificial intelligence; and (ii) began pursuing art as more than a hobby. Avery has trained an AI to create images that look like children's drawings from text phrases. To train the AI, Avery used: (i) art work that Avery's spouse had saved from their grown children and grandchildren: (ii) similar artwork that Avery's spouse's friends provided for the purpose; and (iii) images created by children at a local public school (they volunteered (with their parents' permission) to be part of a project to train an AI).

Avery paints copies of some of the images that the AI generates into paintings that are being sold.

Avery has created two web sites. One allows the school children who were part of the project to continue to interact with the AI. Each child's parent was given a password for the site. The other web site is a commercial site. Anyone can interact with the AI and generate images, but if they want to use those images (for example, as a piece of children's art in the background of an advertisement) there is a licensing fee.

Identify the legal issues that Avery needs to think about and explain each issue identified.