Quick answer
Commercial use of AI-generated images depends on two things: the vendor's plan terms and the content of the image itself. Midjourney grants commercial rights on paid plans, but companies with over $1 million in annual revenue must use Pro or Mega plans to own their assets. Leonardo AI grants commercial rights on all paid plans; free-tier output stays strictly personal. Both tools let you generate images that look like real people, brands, or copyrighted characters — and that legal risk stays with you regardless of plan terms.
Midjourney: what the plan terms say
Midjourney's commercial terms have two catches that matter for client work. First, the revenue threshold: a company (or employee of one) with more than $1 million USD in annual revenue must subscribe to a Pro or Mega plan to own its assets. On the Basic plan, you grant Midjourney a perpetual, worldwide, royalty-free license to your prompts and generated assets. Second, generations are public and remixable by default — only Stealth mode, available on Pro and Mega, keeps them unpublished, and even then on a "best efforts" basis. For client work that needs to stay confidential until launch, this matters. Midjourney V8.1 became the default model in June 2026; pricing starts at $10/month for Basic.
Leonardo AI: what the plan terms say
Leonardo AI takes a different approach. Free-tier output is strictly for personal use, testing, and learning — no commercial use allowed. Any paid plan (Apprentice at $10/month or higher) grants commercial rights to everything you generate, including marketing materials, social media content, client deliverables, print-on-demand merchandise, book covers, and advertising campaigns. Higher tiers (Artisan at $24/month, Maestro at $49/month) add extended commercial rights with clearer resale and merchandise terms. Leonardo is now a Canva subsidiary, which adds SOC 2 Type I/II and GDPR compliance statements — useful signals for teams evaluating vendor risk.
The risks plan terms don't cover
Even with a paid plan and clear commercial rights, three categories of risk stay entirely on you:
- Likeness and celebrity: generating an image that looks like a real person — living or dead — can violate publicity rights regardless of the tool's terms. The tool granting "commercial rights" means the tool won't sue you; it doesn't mean the person depicted can't.
- Trademarks and logos: prompts that include brand names or produce output resembling protected logos create trademark risk. A generated image that looks enough like a Nike swoosh to confuse consumers is a problem even if Nike never issued the prompt.
- Copyrighted characters: generating output based on Disney characters, Marvel heroes, or any other copyrighted IP is infringement regardless of the tool's commercial terms. The tool's license to you does not create a license from the original rights holder.
Client contract language to check
Some client NDAs and contracts forbid AI-generated creative without explicit disclosure. Before delivering AI-generated images to a client, check whether your agreement requires disclosure of AI tools in the creative workflow, and whether the client's brand guidelines permit AI-generated assets at all. Getting this wrong can breach the contract even if the work itself is good.
A practical test before you commit
Generate one real asset you would actually deliver to a client. Compare acceptance rate (does the client approve it?), edit time (how much does a designer still have to rebuild?), and whether the output is distinctive enough to be worth the subscription. If you pay for two image tools you barely use, the cut subscriptions guide or the Premium visual shortlist can help consolidate. Research only; no implementation or account access.
Frequently asked questions
Can I use free-tier AI images for client work?
No. Leonardo's free tier is strictly personal use. Midjourney has no free tier at all. Using free-tier output commercially violates the vendor's terms and potentially your client's contract.
What if my company makes over $1 million?
On Midjourney, you need Pro or Mega to own your assets. On Leonardo, any paid plan covers commercial use regardless of revenue. Verify current thresholds on official pages — terms change.
Do I need to disclose AI-generated images to clients?
Check your contract. Some NDAs require disclosure of AI tools in the creative workflow. Even where not required, disclosure is good practice — it builds trust and avoids surprises if the client learns later.