"Creators' Livelihood Crisis in the AI Era...Urgent Need for Regulation"

CISAC Announces Research Findings at Press Conference
Issues of Creator Rights and Copyright Infringement
Analysis of Economic Losses... Securing Compensation Systems

Image from the study "The Impact of AI-Utilized Content Industry on Creators" announced by CISAC. Provided by the International Confederation of Societies of Authors and Composers.

As cases of unauthorized use of human-created works in content production utilizing AI technology surge, raising issues of creator rights and copyright infringement, the International Confederation of Societies of Authors and Composers (CISAC), a global federation of copyright management organizations, announced on the 3rd through an online press conference the first-ever global economic study analyzing the impact of AI on creators in the music and video content industries.

This study was conducted to analyze the actual state of creator rights violations caused by AI and the resulting economic losses, providing policymakers with concrete data and evidence to discuss regulatory directions aimed at securing fair compensation systems and transparency.

The online press conference featured Bj?rn Ulvaeus, member of the world-renowned pop group ABBA and CISAC President; Gadi Oron, Secretary General; ?ngeles Gonz?lez-Sinde Reig, Vice President; and Marcelo Castello Branco, Chair of the Board, who presented the study results and emphasized the necessity of ‘AI regulation’ to protect creators’ rights.

According to the study released on the 6th, the proliferation of generative AI is expected to bring enormous profits to AI companies while severely negatively impacting creators’ revenues. Despite providing creative fuel to the generative AI content market, music and video content creators are predicted to face revenue declines of 24% and 21%, respectively, by 2028, amounting to estimated losses of approximately 22 billion euros over five years (10 billion euros in music and 12 billion euros in video).

Conversely, due to the rapid growth of the music and video content markets, annual revenues of generative AI providers are expected to increase significantly. In the music sector, annual revenue was 100 million euros in 2023 but is projected to reach 4 billion euros by 2028. Similarly, in the video sector, annual revenue is expected to rise from 200 million euros in 2023 to 5 billion euros in 2028. These revenues result from unauthorized reproduction of creators’ works, indicating an economic value transfer from creators to AI companies.

Additionally, AI-generated content is anticipated to act as a substitute for existing creative works, causing significant changes in creators’ revenue structures. In the music industry, AI-generated music is predicted to account for about 20% of streaming platform sales and approximately 60% of music library sales. In the video content sector, translators and dubbing workers face a risk of a 56% decrease in income.

Bj?rn Ulvaeus, CISAC President, stated, “AI can offer new opportunities to creators, but without proper regulation, it can seriously harm the livelihoods and careers of human creators,” emphasizing, “It is crucial to establish appropriate regulations to protect creators’ rights and build an AI environment that preserves human creativity and culture.”

Meanwhile, according to the ‘Intellectual Property Trade Balance’ statistics released by the Bank of Korea last September, South Korea recorded its highest-ever surplus in music and video copyright sectors in the first half of this year due to strong exports of K-content. However, despite its status as a content powerhouse, South Korea’s AI-related legislation remains insufficient.

If the absence of AI-related legislation continues, creators may not receive fair compensation, leading to decreased motivation for creation and a contraction in new content production. This could weaken South Korea’s content industry competitiveness and seriously affect the industry’s sustainability and position in the global market.

The Korea Music Copyright Association (KMCA), the largest music copyright management organization in South Korea (President Chuga-yeol, hereafter HanEumJeohyeop), as a CISAC member organization, participates in the Communications Experts Group (CEG) to strengthen AI regulations and contribute to international discussions. It is also conducting copyright policy and legal market research, hosting public hearings for the introduction of mandatory AI content labeling legislation, and participating in the Ministry of Culture, Sports and Tourism’s AI copyright system improvement working group, among other activities to promote domestic AI-related legislation.

President Chuga-yeol emphasized, “Protecting the rights of creators who fuel AI technology development and establishing a fair compensation system are not optional but essential for the survival and advancement of the content industry,” adding, “Based on the CISAC economic study results, we will continuously raise awareness of the need for AI-related legislation and seek concrete institutional improvements through cooperation with various domestic and international stakeholders. We ask for your interest and support so that these efforts can bear fruit.”

This content was produced with the assistance of AI translation services.