Generative AI Could Result in AU$35 Billion Loss for Creators

A recent global economic research report has raised alarms about the potential impact of generative artificial intelligence (AI) on the income of music and film creators. Commissioned by the International Confederation of Societies of Authors and Composers (CISAC), the study projects that by 2028, the financial risk for creators could reach an astonishing AU$35 billion.

Income Risks for Creators

The report reveals that creators within the music sector face a 24% income risk, while those in the film industry could experience losses as high as 21%. Particularly vulnerable are roles involved in adaptations, such as translation and voice acting, which may see income risks soaring to 56%. Additionally, screenwriters and directors are projected to encounter income declines ranging from 15% to 20%.

As it stands, the generative AI market within the music and film sectors is valued at approximately AU$4.8 billion, but this figure is expected to balloon to AU$103 billion by 2028. Revenue from AI-generated services is anticipated to grow from AU$500 million to AU$14.6 billion, prompting significant concern among creators about the sustainability of their income.

Call for Policy Action

Björn Ulvaeus, president of CISAC and a prominent musician, emphasized that the future of creators hinges on effective policy-making. He acknowledged the potential for generative AI to offer new opportunities but cautioned that insufficient regulation could jeopardize creators' careers. Policymakers worldwide must act swiftly to safeguard the rights and economic interests of human creators.

Support for this initiative has been echoed by creators' organizations in Australia and New Zealand, which have called for government intervention. They stress the importance of recognizing the value of creators' labor and the need for robust regulatory frameworks to ensure fair income distribution and transparency within the industry. The CEO of APRA AMCOS remarked that while the current AI landscape presents significant opportunities, it also introduces substantial risks, making government action essential.

Potential Industry Transformation

The findings of this report serve as a critical reminder that the evolution of generative artificial intelligence has the potential to reshape the creative industry significantly. Ensuring the protection of creators' rights and income security will necessitate global policy adjustments and proactive measures from regulatory bodies.

Key Points

1. Income Loss for Creators: Generative AI is projected to lead to a 24% income loss for music creators and a 21% loss for film creators.
2. Market Expansion: The market for AI-generated services is expected to grow from AU$4.8 billion to AU$103 billion by 2028.
3. Call for Policy Action: Experts and creators' organizations are urging governments to implement measures to protect the rights and income security of creators.