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The 48-year-old Gravelly Beach man was jailed for two years with a non-parole period of 10 months in the Tasmanian Supreme Court on Tuesday.
Police raided his home in the state's Tamar Valley region in May, finding hundreds of files depicting child abuse on his computer.
A significant amount of it was generated using artificial intelligence, marking the first time police had located and seized AI-generated child abuse material in Tasmania, Australian Federal Police say.
The raids came after multiple reports from the US National Center for Missing and Exploited Children about an Australian downloading child abuse material from a website and social media platform.
The man pleaded guilty to possessing child abuse material obtained using a carriage service and using a carriage service to access child abuse material in October.
It does not matter whether the abuse depicted is AI-generated or involves real exploited children, it remains repulsive and abhorrent and police will continue targeting those sharing it, AFP Detective Sergeant Aaron Hardcastle said in a statement on Saturday.
"People may not be aware that online simulations, fantasy, text-based stories, animations and cartoons, including artificial intelligence-generated content depicting child sexual abuse are all still considered child abuse material under Commonwealth legislation," he said.