CISAC's study warns of a €22 billion loss for creators as generative AI reshapes the creative economy, urging policy changes.
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| A global study reveals that generative AI's rise could cost creators €22 billion by 2028, while tech companies thrive on unlicensed works. Symbolic Image |
Paris, France - October 04, 2024:
The first global study on the economic impact of generative AI in the music and audiovisual industries reveals a double-edged sword for creators. Commissioned by the International Confederation of Societies of Authors and Composers (CISAC) and conducted by PMP Strategy, the study highlights a rapidly expanding AI-driven content market that threatens to erode the livelihoods of human creators while enriching technology companies.
Generative AI's market in music and audiovisual content is projected to grow exponentially, from €3 billion in 2023 to €64 billion by 2028. Tech companies offering generative AI services are set to experience unprecedented revenue increases, such as music-related AI revenues rising from €0.1 billion to €4 billion annually by 2028. Meanwhile, human creators—who supply the creative "fuel" for AI systems—face a €22 billion loss over the same period (€10 billion in music, €12 billion in audiovisual).
Generative AI systems often train on copyrighted materials without proper licensing or remuneration for creators.
AI-generated works compete directly with human-created content, reducing demand for traditional creative outputs.
For instance, by 2028, AI-generated music could account for 20% of revenues on streaming platforms and dominate 60% of music library revenues. Similarly, audiovisual translators, screenwriters, and directors are at risk of substantial revenue losses due to AI's encroachment.
The study emphasizes that regulatory frameworks will play a pivotal role in shaping whether generative AI becomes an opportunity or a threat to human creativity. CISAC leaders, including President Björn Ulvaeus and Vice-President Ángeles González-Sinde Reig, call for ethical and economically sound policies that ensure transparency, fair remuneration, and the legal protection of creators' works.
Without regulatory intervention, creators risk being sidelined in an AI-driven economy, receiving neither recognition nor compensation for their contributions. However, with the right safeguards, generative AI could complement human creativity rather than replace it, fostering a "win-win" scenario for both creators and tech companies.
The disruption caused by generative AI is fundamentally different from previous technological shifts in the creative industries. Unlike past innovations that primarily transformed distribution, AI intrudes directly into the creative process. This raises profound ethical and economic questions about the ownership, authorship, and value of creative work.
CISAC’s Board Chair Marcelo Castello Branco underscores the need to adapt while prioritizing the protection of creators' livelihoods. The study serves as a call to action for policymakers to address these challenges and ensure that creators remain at the heart of the creative economy.
Generative AI presents an inflection point for the music and audiovisual industries. While it offers transformative potential, its unregulated use threatens to devalue human creativity and undermine the economic foundation of millions of creators. The study provides a roadmap for policy and industry stakeholders to balance innovation with equity, ensuring that the rise of AI strengthens rather than weakens the creative ecosystem.