Two-book deal worth over $2 million now in limbo

A literary agency, Europa Content, withdrew support for Jerry Falade’s debut novel after concerns emerged about the author’s possible use of artificial intelligence, the Wall Street Journal reported. The move left a $2 million-plus two-book deal with Macmillan’s Minotaur Books in limbo and added to a growing list of AI-related controversies in the publishing industry.

Falade, a graduate student at Southern Methodist University in Dallas, had been signed by agent Marc Gerald about a month ago after Gerald read the unsolicited manuscript for the crime novel “Call Me, I’ll Hide the Body.” Gerald flew to Dallas to meet Falade, and the proposal was soon sent to publishers and Hollywood representatives.

“You just had to read the cover letter and chapter to know this was a really fantastic book,” Gerald told the Journal.

Fourteen publishers bid for U.S. rights. The Wall Street Journal described the auction as frenzied. Minotaur Books won the auction, signing Falade to a two-book contract worth more than $2 million, according to trade publications. HarperCollins Publishers acquired U.K. rights.

Gerald said that before the auction, one editor who read the proposal flagged concerns about possible AI use, noting passages where the tone and cadence raised questions. The agency then spoke with Falade for about an hour, asking about his writing process and warning him of repercussions for failing to disclose AI use. “He assuaged our concerns, and we moved on,” Gerald said.

After the deals closed, Gerald said he heard from a reporter at a trade publication that rumors were circulating about the book’s heavy reliance on AI. He spoke again with Falade, and this time the author’s answers did not match his prior explanations, Gerald said.

“Initially, we stood by the book and Jerry,” Gerald said. “And ultimately we could only stand by the book.”

Europa Content notified the publishers in a letter that it could no longer support the book after concerns were raised about Falade’s possible AI use. “This raises so many questions about authorship and what AI means for this industry but those are questions for another day,” the letter said, according to the Journal. “We regret that our enthusiasm led to this outcome and we apologize to our publishing partners.”

Gerald no longer represents Falade but said he does not doubt the author’s talent. “We do know that he’s an incredibly gifted storyteller and this is an incredible book,” Gerald said.

Reached on Friday, Falade declined to comment.

A spokeswoman for Macmillan told the Journal that the publisher participated in the auction for the book and that “the agent ultimately pulled the book.” She did not respond to a request for comment on the current status of Minotaur’s book deal with Falade. A spokeswoman for HarperCollins, which like the Wall Street Journal is owned by News Corp, had no immediate comment.

The case is the latest in a series of AI-related controversies to hit book publishing. Hachette Book Group canceled publication of the horror novel “Shy Girl” earlier this year after learning of concerns about its potential reliance on AI. Allegations of undisclosed AI use have also been leveled against the author of this year’s Commonwealth Short Story Prize winner.

The industry continues to struggle with how to screen for AI use, whether to trust authors’ claims about the originality of their work, and what the technology means for copyright ownership.