UNESCO Warns: AI Could Slash Artist Revenues by Nearly a Quarter by 2028

When musician Sarah Chen released her third album last year, she expected the usual challenges—promotion, touring, building an audience. What she didn’t anticipate was watching her streaming revenue decline month after month as AI-generated tracks flooded the platforms. Her story is becoming increasingly common, and new data from UNESCO suggests the worst may be yet to come.

“The current era represents a critical moment for the creative economy. Without renewed investment and fairer market conditions, creators risk being further marginalised as technologies evolve.” — Khaled El-Enany, UNESCO Director-General

A $24 Billion Warning

According to UNESCO’s latest Re|Shaping Policies for Creativity report released this week, generative AI is projected to drive devastating income losses for artists across multiple sectors. Music creators could see their revenues plummet by 24 percent, while those working in the audiovisual sector face potential income reductions of 21 percent by 2028.

The report, which monitors cultural policies across more than 120 countries, paints a stark picture of an industry under siege. AI-generated content is entering global markets at a pace that outstrips current policy responses, creating what UNESCO describes as a widening gap between technological advancement and regulatory protection.

The Creative Digital Divide

Global inequities are compounding the crisis. While 67 percent of people in developed countries possess essential digital skills, that figure drops to just 28 percent in developing nations. This digital divide, paired with the growing dominance of major streaming platforms and opaque recommendation algorithms, is creating a two-tier creative economy.

Intellectual property violations have become endemic. Artists report heightened exposure to unauthorized use of their work in training datasets, with diminishing returns as AI-generated outputs enter the marketplace. The report documents cases where creators have found their distinctive styles replicated by generative models without consent or compensation.

Platform economics favor volume over value. Streaming algorithms that prioritize engagement metrics often bury original human-created content beneath a flood of AI-generated material, making it increasingly difficult for artists to reach their audiences organically.

“These disruptions are occurring at a pace that outstrips current policy responses, exacerbating inequalities and threatening the livelihoods of millions of cultural workers.” — UNESCO Report

Over 8,100 Policy Measures—and Counting

UNESCO’s report outlines more than 8,100 existing policy measures across member states, but the agency warns that most are insufficient for the current moment. The organization is calling for urgent, coordinated action to protect creators’ rights, strengthen regulatory frameworks, and reinforce the cultural sector’s contribution to sustainable development.

The stakes extend beyond individual livelihoods. UNESCO emphasizes that creativity serves as a driver of social cohesion, economic opportunity, and cultural diversity—functions that become increasingly vital as societies navigate rapid technological change.

Governments are being urged to mobilize cultural policy as a strategic priority, ensuring that the creative economy remains viable even as AI capabilities expand. The alternative, the report suggests, is a world where human artistic expression becomes a luxury commodity while algorithmic content dominates the mass market.

This article was reported by the ArtificialDaily editorial team. For more information, visit UN News.