The growing use of AI applications among freelance workers is reshaping trust and relationships with clients. This paper investigates how both workers and clients perceive AI use and disclosure in the freelance economy through a three-stage study: interviews with workers and two survey studies with workers and clients. Findings first reveal a key expectation gap around disclosure: Workers often adopt passive disclosure practices, revealing AI use only when asked, as they assume clients can already detect it. Clients, however, are far less confident in recognizing AI-assisted work and prefer proactive disclosure. A second finding highlights the role of unclear or absent client AI policies, which leave workers consistently misinterpreting clients’ expectations for AI use and disclosure. Together, these gaps point to the need for clearer guidelines and practices for AI disclosure. Insights extend beyond freelancing, offering implications for trust, accountability, and policy design in other AI-mediated work domains.

Generative AI applications present unique design challenges. As generative AI technologies are increasingly being incorporated into mainstream applications, there is an urgent need for guidance on how to design user experiences that foster effective and safe use. We present six principles for the design of generative AI applications that address unique characteristics of generative AI UX and offer new interpretations and extensions of known issues in the design of AI applications. Each principle is coupled with a set of design strategies for implementing that principle via UX capabilities or through the design process. The principles and strategies were developed through an iterative process involving literature review, feedback from design practitioners, validation against real-world generative AI applications, and incorporation into the design process of two generative AI applications. We anticipate the principles to usefully inform the design of generative AI applications by driving actionable design recommendations.