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The Impact of Artificial Intelligence on the Music Industry: A Study Reveals Alarming Stats and Predicts a Multi-Billion Euro Loss

Beyond smiling, opening your mouth in amazement or, directly, laughing and even applauding some bizarre work created by Artificial Intelligence (AI), personal and anecdotal responses in each person’s consumption, Now an ambitious study sheds some light on the impact of this technology on the music industry. That is, it figures and quantifies the challenge that is coming – and which is already very present – in the sector. How big is the challenge? Well, as we intuited, very big. And the subsequent obligatory question is: then, how does the unstoppable generative AI fit into the arts, into music? We will see.

A study by the German consulting firm Goldmedia presented this Friday in Madrid, at a conference organized by the General Society of Authors and Editors (SGAE) for its 125th anniversary, points out that In 2028, 27% of music creators’ income will be in danger due to Artificial Intelligence, which represents about 950 million euros for that year. The same report, focused on the French and German market, as it is commissioned by the copyright management companies of these countries, The damage that AI can cause in the music industry in the next five years (2023-2028) is estimated at around 2.7 billion euros..

The study states that in 2023 The business volume of generative AI is already 3.4 billion and, of this, 8% corresponds to music (275 million). The report, presented by Klaus Goldhammer, CEO of Goldmedia, estimates that the impact on the sector between now and 2028 will be multiplied by 10. This makes 71% of the creators surveyed – some 15,000 authors in Germany and France – fear that AI takes their jobs. According to Golhammer, the most affected genres are electronic music (54%), followed by urban/rap music (53%) and advertising music (52%). Without going any further, Bad Bunny himself became very angry publicly over a song supposedly his created with AI (others to whom the same thing has happened, such as rapper Eladio Carrión, have taken it better).

Many of the professionals in the sector, however, admit to having already used AI in their creations: 35%. A figure that grows a lot if it is distinguished by age: it rises to 51% when authors under 35 years old respond. According to the survey, 63% see it as likely that AI will be adopted in the creative process of composing and writing texts, and 44% believe that it will be used for the complete creation of songs.

And the new forms of creativity?

Furthermore, a significant part of the total number of professionals influences the creative potential of AI, since 43% of those surveyed believe that it can open up new forms of creativity, an example of the constant struggle between risks and opportunities that the challenge seems to pose. In fact, when asked directly about this last question, 64% of the authors believe that the risks outweigh the potential opportunities.

Goldhammer has stressed that, at the moment, there is no remuneration system for creators to charge for their songs used to train generative AI models. That is, although their music is the basis for developing this technology, the authors do not receive any financial reward. For this reason, 90% demand transparency and remuneration when their work is used for these purposes. Goldhammer has cited some cases that have already reached court, such as the one filed in October 2023, when Universal Music Publishing Group, Concord and Abkco sued Anthropic, an AI company backed by Amazon, and Claude, its assistant service. AI. The three publishers claim up to 137,800 euros per work used.

2024-03-15 14:10:08
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