The First Global Economic Study on Generative AI impact in Music and Audiovisuals
Insights to Protect Creators and Shape a Fair Future
Generative AI is reshaping the creative landscape, driving unprecedented growth while presenting existential challenges for creators. A groundbreaking global study commissioned by CISAC (the International Confederation of Societies of Authors and Composers)—representing over 5 million creators across 116 countries—delivers the first comprehensive analysis of AI's economic impact on the music and audiovisual sectors. The study reveals a dual narrative: Generative AI is a powerful enabler for tech-driven innovation but a disruptive force for traditional creative ecosystems. By 2028, the combined market value of AI-generated outputs in music and audiovisual will soar to €64 billion, while human creators stand to lose €22 billion in revenues due to AI-driven competition and copyright exploitation.
The findings are stark: technology companies are poised to reap billions in revenue, while human creators risk suffering devastating income losses over the next five years. The call for action is urgent!
Study key takeaways – Focus on estimates on Music uses most impacted. Source: PMP Strategy, Study on the economic impact of Generative AI in the Music and Audiovisual industries.
Study key takeaways – Focus on estimates on Audiovisual uses most impacted. Source: PMP Strategy, Study on the economic impact of Generative AI in the Music and Audiovisual industries.
Generative AI’s Explosive Growth: The Numbers Speak
Generative AI has already reshaped industries, with its exponential adoption creating a lucrative ecosystem of tools and platforms. The study projects:
Music Sector: AI-generated content will account for €16 billion in market value by 2028, driven by widespread adoption in streaming platforms and music libraries.
Audiovisual Sector: The market for AI-created video outputs will reach €48 billion, fueled by social media content, automated production for TV, and lower-budget films.
These numbers represent a massive opportunity for technology companies leveraging AI, but they also highlight the encroachment on traditional revenue streams for creators.
Creators in Peril: A Sobering Outlook
The study underscores a stark reality: creators are poised to bear the brunt of Generative AI’s growth. By 2028:
Music creators could lose 24% of their revenues, equating to €10 billion over five years.
Audiovisual creators face a similar fate, with 21% of revenues—€12 billion—at risk.
These losses stem from two major factors:
Uncompensated Use of Copyrighted Works: Generative AI models rely on datasets often derived from copyrighted materials without appropriate remuneration.
Content Substitution: AI-generated works are directly replacing human-created content, leading to cannibalization of traditional revenue streams.
Tech Giants: The Big Winners
While creators face significant losses, Generative AI is a windfall for technology companies. The study projects:
AI service revenues in music will reach €4 billion annually by 2028, growing from just €100 million in 2023.
AI services in audiovisual will generate €5 billion annually by 2028, with cumulative revenues exceeding €13 billion over five years.
These profits are driven by business models that exploit copyrighted works for AI training without compensating their originators, raising urgent ethical and legal questions.
Actionable Solutions: Redefining the Creative Ecosystem
To prevent further inequities, CISAC advocates for immediate action, including:
Strengthening Copyright Protections: Ensuring that creators are compensated for the use of their works in AI training datasets.
Establishing Fair Remuneration Models: Introducing royalty systems or fees for AI-generated outputs that leverage copyrighted material.
Fostering Co-Creation Models: Empowering creators to harness AI as a tool, allowing them to capture value from this transformative technology.
These interventions are critical to maintaining a sustainable balance between innovation and fairness in creative industries.
The Road Ahead: Innovation vs. Equity
Generative AI is set to redefine the creative economy, with immense potential to enhance efficiency and innovation. However, without deliberate regulatory and collaborative frameworks, its unchecked growth risks displacing the very creators who form the backbone of these industries.
As CISAC’s study reveals, the next five years will be pivotal. Will we chart a course toward equitable innovation, or allow technology to erode the livelihoods of millions of creators worldwide?
Join the conversation. How can we ensure Generative AI enriches all stakeholders, not just tech giants? Share your insights and help shape the future of creativity.