A recent report from the International Confederation of Societies of Authors and Composers (CISAC) reveals that by 2028, generative AI could siphon off 24% of revenue from music creators and 21% from the audiovisual sector, resulting in a staggering cumulative loss of €22 billion (approximately $23.1 billion) over five years.

CISAC President Björn Ulvaeus urged policymakers to enact legislation that balances the opportunities and threats posed by generative AI, highlighting the importance of protecting human creativity and culture.

The report forecasts that AI-generated content will dominate music libraries, with an expected share of around 60% for use in videos and background music.

CISAC Vice-President Ángeles González-Sinde Reig emphasized the necessity of prioritizing creators' rights in AI policy, as human creators are vital to the creative process.

Australia and New Zealand are leading the way in developing AI policies that protect creators' rights, with Ulvaeus commending Australia for setting a gold standard that balances creator protection with technological innovation.

The Australian Senate has recommended stronger protections for creative workers through standalone legislation, reflecting a proactive approach to AI regulation.

The report also underscores the lack of licensing agreements with AI developers, complicating compensation for creators whose works are used in AI training.

Despite these challenges, CISAC Director Gadi Oron noted that many artists are creatively leveraging AI tools, indicating a complex relationship between AI and the music industry.

Dean Ormston, CEO of Apra Amcos, emphasized that the report highlights both the opportunities and the urgent need for government action to protect creators' rights and incomes.

The report calls for generative AI companies to obtain licenses for using copyrighted works, a requirement already established in the EU but not yet in the U.S.

Currently, many AI models utilize copyrighted works for training without obtaining consent from the original creators, further disadvantaging artists.

Legal disputes are ongoing, as evidenced by the RIAA's lawsuit against generative AI companies for alleged copyright infringement, highlighting the contentious nature of AI's use of music.