A new study predicts a potential income loss of 24% for recording artists by 2028 due to the rise of AI in the music sector, raising alarms among creative professionals.
A recent study by the International Confederation of Societies of Authors and Composers (CISAC) has raised significant concerns regarding the impact of artificial intelligence on the music industry, forecasting a potential income loss of 24 per cent for recording artists by the year 2028. The findings, which were disseminated on Wednesday, indicate that alongside the struggles for artists, technology companies are likely to see enhanced profits from the integration of AI.
The report highlights that generative AI is expected to capture a considerable share of revenues generated by traditional music platforms, anticipating that it will represent around 20 per cent of these earnings. Even more striking is the projection that AI could account for as much as 60 per cent of the revenues associated with music libraries by the same timeline.
The analysis presents a stark warning as AI technology continues to penetrate various sectors of the entertainment industry. According to the study, many corporations are increasingly attracted to the cost-saving benefits of AI automation, which may place creative workers at risk of redundancy or reduced opportunities in their respective fields.
Amid this evolving landscape, labour unions such as SAG-AFTRA and the Writers Guild of America have been actively advocating for protections for their members against the rising tide of AI encroachment in their professions. Consequently, these guilds have sought assurances from studios that their jobs will not be threatened by the advent of AI technology.
Concerns about AI were particularly pronounced during the actors’ strike of the previous year, which coincided with a writers’ strike that collectively brought a substantial portion of Hollywood to a standstill for several months. This extended halt resulted in significant financial repercussions for studios.
In the aftermath of these strikes, SAG-AFTRA claimed that it achieved important victories in safeguarding its members from AI’s increasing influence. However, there remain uncertainties surrounding the effectiveness of these protections, with some critics expressing concerns that provisions could allow studios to exploit various loopholes.
Similarly, the Writers Guild of America has reported its own successes, which include stipulations requiring studios to disclose the use of AI-generated material provided to writers. The guild has ensured that writers cannot be forced to employ AI in their work, nor can AI be credited for contributions in TV shows or movies.
Nonetheless, ambiguities linger. Some writers are reportedly utilising tools such as ChatGPT in their creative processes, illustrating the complexity of navigating the integration of AI in creative fields. This trend underscores the likelihood that studios may continue to search for legal avenues to leverage the technology without clear guidelines.
The discussion around AI’s impact on the creative industries continues to evolve as stakeholders, including artists and their unions, grapple with the emerging challenges and opportunities presented by advancements in artificial intelligence technologies.
Source: Noah Wire Services
- https://mixmag.net/read/music-industry-workers-lose-quarter-income-ai-2028-study-finds-news – Corroborates the forecast of a 24% income loss for music industry workers by 2028 and the exponential growth of generative AI revenues.
- https://www.socanmagazine.ca/news/cisac-releases-study-of-ais-economic-impact-on-music-and-screen-media/ – Supports the prediction that generative AI will capture a significant share of revenues from music streaming platforms and music libraries by 2028.
- https://www.musicbusinessworldwide.com/market-for-gen-ai-outputs-to-be-worth-over-16bn-annually-by-2028-but-it-could-cannibalize-24-of-music-creators-revenues-cisac-predicts/ – Details the projected revenue loss for music creators and the anticipated market value of AI-generated music by 2028.
- https://mixmag.net/read/music-industry-workers-lose-quarter-income-ai-2028-study-finds-news – Explains the economic impact of generative AI on music and audiovisual creators, including the cumulative loss of €22 billion over five years.
- https://www.socanmagazine.ca/news/cisac-releases-study-of-ais-economic-impact-on-music-and-screen-media/ – Highlights the role of copyrighted works in training AI models and the subsequent revenue transfer from creators to AI providers.
- https://www.musicbusinessworldwide.com/market-for-gen-ai-outputs-to-be-worth-over-16bn-annually-by-2028-but-it-could-cannibalize-24-of-music-creators-revenues-cisac-predicts/ – Discusses the ‘cannibalization’ rates of revenues lost to AI in different parts of the music business, such as streaming, radio, and background music.
- https://www.socanmagazine.ca/news/cisac-releases-study-of-ais-economic-impact-on-music-and-screen-media/ – Mentions the urgent need for policy-level action to ensure fair remuneration for creators in the face of AI’s economic impact.
- https://www.musicbusinessworldwide.com/market-for-gen-ai-outputs-to-be-worth-over-16bn-annually-by-2028-but-it-could-cannibalize-24-of-music-creators-revenues-cisac-predicts/ – Describes the potential for AI-generated music to become a significant part of music on streaming platforms and in B2B music libraries.
- https://mixmag.net/read/music-industry-workers-lose-quarter-income-ai-2028-study-finds-news – Quotes CISAC President Björn Ulvaeus on the dual impact of AI, both as an opportunity and a potential threat to human creators.
- https://www.socanmagazine.ca/news/cisac-releases-study-of-ais-economic-impact-on-music-and-screen-media/ – Details the economic projections and the need for regulatory actions to protect creators’ interests.
- https://www.musicbusinessworldwide.com/market-for-gen-ai-outputs-to-be-worth-over-16bn-annually-by-2028-but-it-could-cannibalize-24-of-music-creators-revenues-cisac-predicts/ – Highlights the call from CISAC for decision-makers to protect human creators and the cultural and creative sectors.
