Generative AI can increase inequality and revenue losses in the creative industries

Generative AI can increase inequality and revenue losses in the creative industries

Cover photo of the new UNESCO report, Re|Shaping Policies for Creativity. Credit: Diana Ejaita/UNESCO
  • by Oritro Karim (united nations)
  • Inter-Press Office

UNITED NATIONS, Feb 25 (IPS) – As generative artificial intelligence (AI) rapidly expands into virtually every sector of society, those working in the cultural and creative industries are expected to suffer some of the biggest losses. With AI-generated content expected to dominate global markets in the coming years, combined with a lack of strong regulatory frameworks to protect intellectual property and AI’s ability to produce content quickly and at low cost, the United Nations Educational, Scientific and Cultural Organization (UNESCO) warns that generative AI could become a major driver of inequality and threaten the livelihoods of millions of cultural workers around the world.

“It is no longer enough to simply celebrate the potential of digital tools,” said Lodovico Folin-Calabi, Director of the UNESCO Liaison Office in Brussels and UNESCO Representation to the European Union. “We need to critically examine how these technologies are deployed, who designs them, and whose voices are represented or excluded in their development.”

On February 18, UNESCO published the latest edition of its flagship report, Reshaping policy for creativityexploring how digital transformation and emerging technologies are reshaping the global cultural landscape. Drawing on data from more than 120 countries, the report highlights the growing impact of artificial intelligence, the changing dynamics of global trade and the increasing pressure on artistic freedom. UNESCO calls on governments, international institutions and technology platforms to strengthen policy frameworks to prevent rising inequality and protect the rights and livelihoods of creators, presenting a roadmap of more than 8,100 policy measures.

The report highlights that while emerging digital technologies offer new opportunities for innovation and artists with tools to expand their reach and streamline creative production, they have also deepened existing inequalities and made economic success increasingly precarious. It is predicted that generative AI could lead to a global revenue loss of as much as 24 percent for music creators and 21 percent for audiovisual creators by 2028. These losses are compounded by artists’ growing reliance on digital revenue streams, which now account for nearly 35 percent of their revenues – an increase of 17 percent from 2018.

As digital technologies become increasingly important to artists’ livelihoods, the rise of AI-generated content, increased risks of intellectual property infringement, and continued market volatility could make it even more difficult for cultural workers to remain sustainable. In recent years, streaming platforms and content management systems have shifted to prioritize specific forms of content from popular creators, leaving smaller, lesser-known creators with far fewer opportunities for fame or success.

“I think emerging artists are struggling more than established artists with the rise of AI,” says Kiersten Beh, a traditional illustrator from New Jersey. “Senior artists, especially freelancers, already know how to promote themselves and showcase their work, and many of them have built strong relationships with clients over time. I fear that as an emerging artist, I don’t have these connections yet and are instead competing directly with AI.”

The report also highlights persistent gaps in how countries protect artists and their work. Only 61 percent of the countries surveyed appeared to have adequate frameworks to guarantee artistic freedom and prevent intellectual property infringement by AI.

While around 85 percent of countries included the cultural and creative sectors in their national development plans, only 56 percent outlined specific cultural objectives, highlighting a clear gap between broad commitments and concrete action. Furthermore, only 37 percent of countries surveyed reported that measures have been taken to support cultural workers operating in environments anchored in political instability, protracted conflict or displacement.

“We, international organizations, states, artists and humanity in general, must work together to ensure that AI does not restrict the rights of anyone who wants to engage in artistic creativity,” said Alexandra Xanthaki, United Nations (UN) Special Rapporteur on cultural rights. “This includes not only artists, but anyone who wants to participate in the artistic life.”

These challenges are especially pronounced in the Global South, where artists face increased risks associated with technological barriers and widening digital divides. The report notes that about 67 percent of people in developed countries have essential digital skills, compared to just 28 percent in developing countries. Furthermore, only 48 percent of countries surveyed have developed systems to track the consumption of digital cultural content.

Colombian independent expert Viviana Rangel highlighted these imbalances during her talk UNESCO in October 2025. “Our region does not produce this type of technology, but consumes it. This puts us in a more vulnerable position against the unintended effects of these technologies in the cultural field,” she said, adding that AI systems often sideline the perspectives and input of artists in the Global South.

Meanwhile, support for vulnerable artists remains significantly inconsistent and underfunded, leaving many exposed to emerging risks such as digital surveillance and algorithmic bias. Direct government funding for the cultural sectors remains remarkably low – less than 0.6 percent of global GDP – and is expected to decline further in the coming years.

Furthermore, progress towards ensuring universal support for cultural workers remains uneven, with a pronounced gender gap affecting women artists. Although the share of women leading cultural institutions worldwide has increased from 31 percent in 2017 to 46 percent in 2024, significant disparities remain: women hold 64 percent of leadership roles in developed countries, compared to just 30 percent in developing countries. Furthermore, entrenched policy frameworks continue to position women primarily as cultural consumers, rather than recognizing and supporting them as creators and leaders.

Achieving a sustainable future for artists and cultural workers in the age of AI will require more than technological adaptation; it requires just policy reforms and coordinated global action. In its latest report, UNESCO calls for renewed investment, a more balanced market and stronger cooperation measures between governments, institutions and industry leaders to safeguard artistic freedom and ensure that creative work remains a viable livelihood. The agency further emphasizes that creativity must continue to serve as an essential source of economic opportunity, cultural diversity and social cohesion in a rapidly digitalizing world.

IPS UN office report

© Inter Press Service (20260225084417) — All rights reserved. Original source: Inter Press Service

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