The International Confederation of Societies of Authors and Composers (CISAC) has released a new report, Study on the economic impact of Generative AI in Music, and Audiovisual industries, concluding that fair remuneration for creators requires urgent, policy-level action.
According to the study, it’s estimated that 24 percent of creators’ revenues will be at risk in 2028, with a cumulative loss of €10 billion over five years, if the current regulatory framework is unchanged. Creators will face these potential losses on two fronts: loss of revenues due to the unauthorized use of their works without any remuneration; and the “cannibalization” of their revenue streams due to the substitution of AI-generated content competing against human-made works. Generative AI music is projected, in 2028, to account for approximately 20 percent of music streaming platforms’ revenues, and around 60 percent of music libraries’ revenues.
CISAC reports that copyrighted works are driving enormous economic value for generative AI providers, but creators are left out of this growth. Generative AI content in music is estimated in the study to be worth a cumulative €40 billion over the next five years, rising to an annual value of about €16 billion in 2028. Meanwhile, generative AI providers are building significant revenues by leveraging copyrighted content to develop and train their models and generate AI content, with this content being used without the consent and remuneration of those who create it. This creates a transfer of value in which creators’ revenues are being unfairly and unethically appropriated by generative AI providers.
SOCAN has been a strong advocate urging the Canadian government to implement transparency and record-keeping requirements on generative AI providers, and the CISAC report confirms that this is an urgent goal. Developing a well-defined legal and regulatory framework for generative AI is needed to ensure ethical behaviour by generative AI providers, including respecting copyright and properly remunerating creators. Enforceable transparency obligations are a foundational element of such a framework, as creators and collective management organizations (CMOs) like SOCAN need information on how their works are used to effectively enforce their rights.
The CISAC study concludes that the future of the creative sector is at risk due to generative AI, but this risk can be prevented by clearing the rights to the creative works used by generative AI providers and fairly compensating creators. Rightsholders and CMOs, including SOCAN, have a proven history of adapting to innovative technologies, with diverse, effective solutions that allow users, like generative AI providers, to obtain access to large repertoires of works for a reasonable fee. The opportunities presented by generative AI services can only be fairly realized when they compensate creators for the use of their works.
Without an urgent commitment to address the current imbalance in the generative AI framework, there is a significant long-term risk to creators’ revenues, cultural diversity, and the quality of creative works available to the public.