In July, according to the Report of Internet Watch Foundation (IWF), 90% of 3512 AIG-CSAM images which are shared on dark web were realistic enough to be assessed under the same law as real CSAM. Also, AI pornography services are lowering existing technological barriers by allowing content to be generated quickly with simple inputs and disseminated around the world. This poses an unprecedented challenge to existing legal frameworks, which are designed to protect real children for each country. This paper examines the complex issues of freedom of speech, the applicability of criminal law principles to AIG-CSAM involving virtual children and cross-border jurisdictional challenges. Through a comparative analysis of the legal systems of the United States, Japan, Australia, and South Korea, we examine the how each country is addressing these issues and attempting to solve the gaps in regulation. Also, the paper emphasizes the need for a modern global regulatory approach that balances public policy and freedom of expression. As a result, we recommend the development of new legal frameworks for crimes related to AIG-CSAM involving virtual children in addition to existing laws, strengthening cross-border enforcement mechanisms, and the development of international standards.