Investigation underway after NSW high school rocked by alleged AI-generated sexual images of students

A NSW high school has been rocked by allegations a student used artificial intelligence to create sexualised images and videos depicting fellow students.

About 10 female students were allegedly depicted in the material, which was shared on social media, a source familiar with the incident told 7NEWS.com.au.

The source alleged a Year 9 student created the material, and affected students reported the matter to the principal around the beginning of September.

The school subsequently addressed the year group about the incident, telling students the matter was being handled and had been reported to police, according to the source, who asked to remain anonymous.

The source said they had spoken with some of the girls involved and described them as feeling annoyed and “creeped out”.

The source said some students believed further action should be taken and that the student allegedly responsible should not be allowed to return to the school.

7NEWS.com.au understands the student was expected to return to school on Thursday after being suspended for several days and was expected to apologise to some of the affected students.

The NSW Department of Education confirmed to 7NEWS.com.au that the school was aware of the incident and had taken disciplinary action.

“The school took immediate disciplinary action as soon as it became aware of this incident and reported it to NSW Police and the eSafety Commissioner,” a spokesperson said.

“Counselling and wellbeing services are available at the school for any student who has been affected by this incident.”

Australia’s online safety regulator has also confirmed it is investigating.

“eSafety is unable to comment about the details of individual complaints but can confirm it is investigating this incident and has been in contact with the school,” eSafety Commissioner Julie Inman Grant told 7NEWS.com.au.

Inman Grant said the issue extended well beyond the reported incident.

She said eSafety had been aware since early last year of reports of intimate image-based abuse and child sexual abuse material involving students under 18 circulating in schools as a result of “nudifying” services.