AI threatens AUD $519 million in music creators' revenues by 2028

APRA AMCOS has released an extensive report titled "AI and Music," which highlights the profound and potentially devastating impacts of artificial intelligence (AI) on music creators in Australia and New Zealand.

The study, conducted by Goldmedia GmbH, surveyed over 4,200 APRA AMCOS members, including songwriters, composers, and music publishers, to gauge the economic and cultural implications of AI on the music industry.

The report's findings are of significant concern, projecting that by 2028, 23% of music creators' revenues - approximately AUD $519 million - will be at risk due to generative AI. To date, no remuneration system adequately addresses this financial gap caused by AI-generated content.

Despite a large proportion of respondents (54%) recognizing that AI technology can assist the human creative process and 38% already implementing AI in their work, the risks associated with its use remain substantial. A striking 82% of music creators are worried that AI in music could jeopardize their livelihoods, and 65% believe that the risks of AI outweigh its opportunities.

APRA AMCOS CEO Dean Ormston emphasised the urgency of regulatory measures, stating, "We are seeing the equivalent of a fast-tracked industrial revolution. Global forecasts relating to generative AI wealth generation by 2030 are astronomical, yet no major platform has asked for consent or paid for the data used to train platforms and drive AI outputs." He called for immediate government action to implement transparency guidelines and legislative protections to ensure fair remuneration and rights for music creators.

The report also touches upon issues of cultural appropriation, especially for Aboriginal and Torres Strait Islander music creators. According to the survey, 89% of Indigenous respondents fear that AI will cause cultural appropriation, and 67% find it challenging to protect their cultural rights due to AI. Leah Flanagan, Director of the National Aboriginal and Torres Strait Islander Music Office (NATSIMO), commented, "The rise of AI technology poses significant threats to the cultural and economic wellbeing of all Indigenous communities."

The survey also indicates that music creators are not only worried about financial impacts but are also calling for policies to address ethical considerations. An overwhelming 97% of respondents demand that policymakers give more attention to AI and copyright challenges, and 95% insist that copyright holders must be asked for permission before their works are used as input for AI systems.

Experts and industry figures have contributed their perspectives to the report. Bernard Fanning, Caitlin Yeo, Clare Bowditch, Jimmy Barnes, Julian Hamilton, Kate Miller-Heidke, and other prominent artists have voiced their concerns about the ramifications of unregulated AI in the music industry.

Professor Dr Klaus Goldhammer, CEO of Goldmedia GmbH Strategy Consulting, remarked on the significance of the study, stating, "This report is the first major analysis of the interplay between music and AI in Australia and New Zealand. It examines the economic dimension and trends in this fast-growing market, as well as the attitudes of music creators." He highlighted Australia and New Zealand's role in setting a global benchmark in adapting to AI-driven changes.

Dean Ormston reiterated the necessity for stringent regulations: "If the use of AI is unregulated and unlicensed, it will be economically devastating. Creators pour their hearts and souls into their work, yet they're facing a reality of seeing their creations exploited by AI platforms." He urged governments to enforce EU-style transparency guidelines and sanctions for non-disclosure to protect the creative industry.

The comprehensive nature of this report has underscored the pressing need for regulatory action to safeguard the future of music creators and preserve cultural integrity amidst growing AI influences.