Global economic study shows human creators’ future at risk from generative AI
Policy makers must safeguard creators’ rights and implement transparency rules
- Revenues at risk of loss for creators by 2028: 24% in music; 21% in audiovisual
- The market for Gen AI music and audiovisual content will rise from €3 billion now to €64 billion in 2028
- Revenues of Gen AI services in music and audiovisual projected at €9 billion in 2028, up from €0.3 billion now
The first ever global study measuring the economic impact of AI in the music and audiovisual sectors calculates that Generative AI will enrich tech companies while substantially jeopardising the income of human creators in the next five years.
This is one of the key findings of the study commissioned by CISAC (International Confederation of Societies of Authors and Composers, representing over 5 million creators), and conducted by PMP Strategy.
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While the revenues of Gen AI providers will see dramatic growth over the next five years, creators risk losing a large share of their current income due to AI’s substitutional impact on human-made works. Despite providing the creative fuel of the “Gen AI” content market, music and audiovisual creators will see respectively 24% and 21% of their revenues at risk of loss by 2028. This amounts to a cumulative loss of €22 billion over the 5-year period (€10 billion in music; €12 billion in audiovisual).
The study finds that the market for music and AV content generated by AI will increase exponentially in the next five years, growing from around €3 billion now to €64 billion in 2028.
The economic study assesses that, as a result of this exponential growth in the market for music and audiovisual content, the future revenues of Gen AI providers will rise to annual revenues of €4 billion in music (up from €0.1 billion in 2023) and €5 billion in audiovisual (up from €0.2 billion) by 2028. These are revenues derived directly from the unlicensed reproduction of creators’ works, representing a transfer of economic value from creators to AI companies.
In the music sector, the streaming and music library markets will be strongly impacted by AI. By 2028, Gen AI music is projected to account for approximately 20% of traditional music streaming platforms’ revenues, and around 60% of music libraries’ revenues.
The projected revenue loss will also be substantial for audiovisual creators. Translators and adaptors for dubbing and subtitling will experience the strongest impact, with 56% of their revenue at risk, while screenwriters and directors could see their revenues cannibalised by 15 to 20%.
The study’s key takeaway
The study concludes: “In an unchanged regulatory framework, creators will actually suffer losses on two fronts: the loss of revenues due to the unauthorised use of their works by Gen AI models without remuneration; and replacement of their traditional revenue streams due to the substitution effect of AI-generated outputs, competing against human-made works”.
According the CISAC Director General Gadi Oron the study shows the enormous value that copyright works bring to Gen AI companies. “The conclusions point to a fundamental flaw that is opening up in the market, with creators’ works being unfairly and unethically appropriated to boost the revenues of Gen AI providers, while leaving the creators themselves out of this growth. There is a critical message here for policy makers: they must act urgently to safeguard human creators, culture and creativity. They must ensure that human creators are protected, can exercise their legal rights and can demand transparency from AI services. With these principles enshrined in the AI environment, this can be a win-win for creators and the tech industry rather than a threat to our culture and creative sector”.
CISAC President Björn Ulvaeus has welcomed the study as a guideline to policy makers in legislative debates around the world. “For creators of all kinds, from songwriters to film directors, screenwriters to film composers, AI has the power to unlock new and exciting opportunities – but we have to accept that, if badly regulated, generative AI also has the power to cause great damage to human creators, to their careers and livelihoods. Which of these two scenarios will be the outcome? This will be determined in large part by the choices made policy makers, in legislative reviews that are going on across the world right now. It’s critical that we get these regulations right, protect creators’ rights and help develop an AI environment that safeguards human creativity and culture.”
Teosto’s CEO, Risto Salminen, highlights the implementation of the EU AI Act as one of the most critical legislative processes for the future of Finnish creators and the broader content industry. “The music industry has adapted to many changes brought by digitalization over the years. However, as technology advances, we must ensure the livelihoods of creative professionals and the competitiveness of the entire sector. It is crucial to establish functioning markets that respect the copyrights of content creators and secure fair compensation for the use of works in AI-related contexts. This approach fosters sustainable competitiveness and growth while providing a balanced foundation for global innovations that protect human creativity and cultural diversity.”
Background and methodology
The study is the first of its kind to estimate the economic impact of Gen AI on creators of music and audiovisual productions on a global level. It combines qualitative and quantitative research, using Gen AI application case studies to identify areas of greatest impact and converting these into economic estimates on the market penetration of Gen AI services and the revenue losses to creators. It also provides estimates of Generative AI tools and services’ revenues that can serve as basis to calculate remuneration schemes for creators.
The historical figures and forecast assumptions are based on market data, relevant benchmarks and extensive interviews with industry experts: Collective Management organisations (CMOs), creators, tech players, producers, publishers, DSPs, institutional players representative of these industries, and public institutions.