The Artist Vs The Robot :

 Everyone has their favourite artist or genre of music , now imagine that the favourite artist had a song saying what you want it to  ! Not only can you enjoy their music because it’s relatable but now they are relating directly to you , and even better , you decide what they’re saying about you, word for word. Well this is all possible with the use of artificial intelligence. In the past year companies like musicfy have made these services available. Seems great for us , the consumers , we get tailored music that says exactly what we want. However the consumption of this tailored music service and the production of it is extremely worrying for some artists , why might that be ? Post Malone even quoted on Joe Rogan's podcast how this service will end up producing songs that he thinks is “better than I could ever do” ( Malone, 2023) . Notice here how the artist isn’t involved in the transaction , the transaction is between the consumer and the AI service provider. So despite no involvement , the artists still inherits the cost of less revenue. This is an example of what we call a negative externality in economics. To get technical it’s the “indirect imposition of a cost by one party onto another”. ( Kenton, 2024)

Figure 1

To get specific , it can be called a negative production externality. This simply refers to the production causing the indirect cost. This is true. If people begin producing these music creating services then there is more competition in the market of music. More competition is relative to saying increased supply in economics. Standard economic practice states increased supply means lower prices. These lower prices are for the music market , meaning the production is causing artists to receive less for their music. This loss in price can be seen as another indirect cost that stems from the production of music creating AI services.  So as well as battling for a consumer to choose your personal music instead of AI , the artist is also battling falling prices as well. Seems like a lot to be dealing with given the artist had no involvement in the first place ! In the graph above you can see how the private cost is lower than the social cost. If there is no indirect cost to a third party , then the social cost and private cost should be the same. As the only cost of the production is on the person creating it. That seems fair , however from the figure 1 social cost is higher , which reflects the indirect costs causing the negative production externality we’ve spoken about in this blog.

 

Figure 2

Furthermore, the present situation with artificial intelligence in the music industry will also lead to a negative consumption externality. This is when the consumption of a good has a negative impact on a third party who is not involved in the transaction and is not compensated for this harm. In the AI music scenario, individual consumers purchase songs made with the use of AI off of companies such as musicfy. Again, this  transaction between the two parties - the consumer and the company - has a negative impact on a third party - musicians who are entirely uninvolved in the process. Consumers opting to listen to AI music affects musicians as they will receive less streams on their songs and so earn a reduced revenue. This means the benefit the consumers get is much higher than the social benefit. As shown in Figure 2 above.

On the other hand, AI opens up a myriad of opportunities for positive change, particularly in the realm of art. Artists now have unprecedented access to cutting-edge AI tools and techniques, allowing them to explore new creative skills beyond traditional genres. These algorithms could help generate visually captivating compositions, AI-powered music programs assist composers in crafting melodies. By pushing passt conventional boundaries, these programs empower artists to unleash their creativity and expression to new heights. While this path is fraught with risks and uncertainties, it also presents a fresh platform for creative expression. AI's integration into the arts arena has the potential to revolutionise artistic processes and evoke emotions in ways previously unimagined.

AI music is a piece of technology that is fascinating to us all! However, alongside its benefits, it could also have unfortunate consumption and production externalities. Singers and rappers may seem quite detached, living exciting and luxurious lives, but many of them are simply trying to make a living like us. They have worked for their entire lives to perfect their skills. Is it fair for them to compete with a computer system that can imitate their talents within seconds? The increased competition AI brings will result in them getting lower revenues. We all love young, up-and-coming artists who take the industry by storm and this will hurt them the most. Why would producers take a risk on a rising star if they can use an algorithm that guarantees a certain quality at a lower price? It will cause our music to become repetitive and boring. This won't just damage the artists directly involved, but all of them as a whole. Many of them will be forced to leave the profession and become unemployed due to a lack of opportunities and profits available to them - the social cost is far greater than the private cost despite any benefit.

We are by no means saying that you should never listen to AI music. But, next time you do, think of the impact on not only your favourite artist, but on all artists.

Bibliography:

Rogan,J.(2024) The Joe Rogan Experience [Podcast]. 8 August 2023. Available at : https://open.spotify.com/episode/4L2mPZUl0K1NR0jnjlYR7V?si=79a1403456924cd2

Will Kenton, W.K. (2024) ‘Externalities , What It Means In Economics With positive and negative examples’ , Investopedia. January 24 2024.