This chapter examines the provisions of the AI Act pertaining to generative AI and identifies their implications for the legal treatment of AI-generated content. Arguably, the EU acknowledges the nature of such subject matter as a copyright-ineligible private asset and implements targeted measures to address the corresponding challenges. Starting from this premise, the chapter explores the proprietary status of AI-generated content “de lege lata” and discerns inconsistencies which require the intervention of IP law. In this respect, the study advocates for the institution of a sui generis IP right and endeavors to outline its particularities, e.g., the appropriate personal, material, and territorial scope of application, as well as the term of protection. The suggested approach aligns with the regulatory model introduced by article 15 Directive (EU) 2019/790.