A groundbreaking global study has revealed the potentially devastating economic impact of Generative AI (Gen AI) on creators in the music and audiovisual (AV) industries. Commissioned by the International Confederation of Societies of Authors and Composers (CISAC) and conducted by PMP Strategy, the report warns that creators could face revenue losses of 24% in music and 21% in AV by 2028.
The study, supported by the Indian Performing Rights Society (IPRS), paints a stark picture: while tech companies profit immensely, creators risk losing a cumulative €22 billion over five years. This shift underscores a growing imbalance where the creative outputs of human creators are fueling Gen AI models without fair remuneration.
By 2028, Gen AI-driven content markets in music and AV are projected to grow exponentially, rising from €3 billion in 2023 to €64 billion. Meanwhile, revenues for Gen AI providers in music are expected to soar from €0.1 billion to €4 billion, and AV revenues will leap from €0.2 billion to €5 billion.
The impact is most severe for specific segments within the AV industry, such as translators and dubbing professionals, who could lose 56% of their income. Similarly, screenwriters and directors face a loss of 15–20% of their revenues, primarily due to Gen AI’s substitution effect.
CISAC and other industry leaders stress the urgency of implementing robust regulations to safeguard creators’ rights. Björn Ulvaeus, CISAC’s President, highlights the dual-edged potential of AI, stating, “AI can unlock opportunities but, without proper regulation, could severely harm human creators’ careers and livelihoods.”
The study identifies a critical flaw: the unlicensed and unauthorized use of creators’ works, which drives economic gains for Gen AI providers. CISAC Director General Gadi Oron has called for transparency and remuneration schemes to ensure that creators benefit fairly from their contributions to the AI ecosystem.
Rakesh Nigam, CEO of IPRS, emphasizes the dual challenge posed by AI: fostering innovation while protecting creators’ livelihoods. He urges policymakers to adopt measures that align the growth of AI technologies with fair compensation for creators. “Robust policies are essential to ensure human creativity retains its value,” Nigam asserts.
As Gen AI continues to redefine the creative economy, experts agree that the choices made by policymakers today will determine the future of creativity. CISAC’s study serves as a clarion call for global collaboration to ensure creators’ rights are protected, striking a balance between technological advancements and human ingenuity.
Key Highlights:
- CISAC’s study highlights a €22 billion potential revenue loss for creators in music and AV by 2028 due to Gen AI.
- AI-generated content markets are projected to grow from €3 billion to €64 billion in five years, with creators facing income substitution.
- Industry leaders call for urgent regulatory measures to safeguard creators’ rights and demand transparency from AI companies.
- Indian Performing Rights Society stresses the importance of fair policies to ensure creators are compensated for their contributions.
Credit: This article is based on CISAC Media Statement.