Generative AI could significantly impact the music industry's revenue landscape, according to a new study by the International Confederation of Societies of Authors and Composers (CISAC) and PMP Strategy.

Key Findings:

• Market value of AI-generated music could reach $16.82 billion by 2028, up from $1.05 billion in 2023
• AI-generated tracks may represent 20% of streaming platform revenue by 2028
• Machine-made songs could comprise 60% of music libraries revenues
• Human creators face potential revenue loss of $10.51 billion between 2024-2028
• Digital revenue sources could see a 30% decline for creators by 2028
• The year 2028 alone could see a $4.20 billion loss in creator revenue

The study incorporated input from over 50 industry professionals and used both qualitative and quantitative methodologies. Revenue projections primarily come from three sources:

• Traditional streaming platforms featuring AI tracks
• B2B AI music providers
• Dedicated AI music streaming services

Current Legal Response:

• Ongoing court cases in U.S. and Europe
• Implementation of the AI Act in Europe
• Proposed legislation including NO FAKES Act and TRAIN Act
• Slow progress on legislative measures

The findings emphasize the urgent need for comprehensive legal frameworks and industry solutions to address the impact of generative AI on music creators and rightsholders.

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