Generative AI to slash creators’ earnings by €22B by 2028
Generative AI to slash creators' earnings by €22B by 2028
A recent study by the International Confederation of Societies of Authors and Composers (CISAC) forecasts that by 2028, generative artificial intelligence (AI) could erode 24% of music creators’ revenues and 21% of audiovisual creators’ incomes, leading to a combined loss of €22 billion over five years.
The study, conducted by PMP Strategy, projects that AI-generated music will account for approximately 20% of streaming platform revenues and about 60% of music library revenues by 2028. This surge in AI-generated content is expected to divert substantial income from human creators, resulting in a cumulative loss of €10 billion for music creators and €12 billion for audiovisual creators between 2023 and 2028.
Generative AI services in the music and audiovisual sectors are anticipated to experience exponential growth, with revenues escalating from €0.3 billion in 2023 to €9 billion by 2028.
Industry leaders, including CISAC President and ABBA co-founder Björn Ulvaeus, have expressed concerns about the unlicensed use of copyrighted works to train AI models. Ulvaeus therefore pleads for regulations that protect creators’ rights and ensure fair compensation, stating, “AI can be and is a wonderful tool… But this progress must never be at the expense of creators’ rights.”
In October 2024, over 11,000 artists, including members of ABBA, Radiohead, and The Cure, signed an open letter protesting the unauthorized use of their works in AI training datasets. “The unlicensed use of creative works for training generative AI is a major, unjust threat to the livelihoods of the people behind those works, and must not be permitted,” says the petition.
Resistance might be futile in the long run when it comes to Generative AI
The creative sector has initiated legal actions against AI companies for unauthorized use of copyrighted material. For instance, lawsuits have been filed against AI startups Suno and Udio for allegedly using technology to replicate copyrighted music, including songs by ABBA.
The European Union’s AI Act for instance wants to ensure that AI development aligns with creators’ rights. Ulvaeus supports the Act, stating, “The EU AI Act is a vital first step by policymakers to ensure creators and the creative industries are properly protected in the age of AI.”
However. Generative AI is rapidly becoming a vital tool for artists and producers alike. Afterall AI-powered applications assist in composing melodies, harmonies, and lyrics, streamlining the creative process and enabling exploration of new musical styles. The widespread adoption indicates that AI is becoming an integral part of music production.
The economic benefits of generative AI are equally compelling. AI-generated music can be produced at a fraction of the cost and time required for traditional methods, appealing to record labels and streaming platforms aiming to reduce expenses and increase output.
So, like it or not but the convergence of technological progress, economic benefits and industry adoption clearly indicates that generative AI is becoming an entrenched component of the music industry. Efforts to resist its integration may become increasingly impractical. The real question might well be this one: will the industry keep pace with this evolution? We’ll see.
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