Generative AI could deepen inequality and income losses in creative industries


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Generative AI could deepen inequality and income losses in creative industries

Cover photo of the new UNESCO report, Re|Shaping Policies for Creativity. Credit: Diana Ejaita/UNESCO

UNITED NATIONS, Feb 25, 2026 (IPS) – As generative artificial intelligence (AI) rapidly expands across almost every sector of society, those working in 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 the lack of strong regulatory frameworks to protect intellectual property and AI’s ability to produce content quickly at low cost, the United Nations Educational, Scientific and Cultural Organization (UNESCO) warns that generative AI may become a major driver of inequality, threatening 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 must critically examine how these technologies are implemented, who designs them, and what voices are represented or excluded in their development.”

On February 18, UNESCO published the latest edition of its flagship report, Re|Shaping policies for creativityexamining 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 growing pressures on artistic freedom. UNESCO calls on governments, international institutions and technology platforms to strengthen policy frameworks to prevent rising inequalities and protect the rights and livelihoods of creators, presenting a roadmap of more than 8,100 policy measures.

The report emphasizes that while emerging digital technologies offer new opportunities for innovation and provide artists with tools to expand their reach and streamline creative production, they have also deepened existing inequalities and made economic success increasingly uncertain. It projects that generative AI could lead to global revenue losses of up to 24 percent for music creators and 21 percent for audiovisual creators by 2028. These losses are compounded by artists’ increasing reliance on digital revenue streams, which now account for nearly 35 percent of their earnings, representing a 17 percent increase from 2018.

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

“I think emerging artists are struggling more than established artists with the rise of AI,” said Kiersten Beh, a traditional illustrator based in New Jersey. “Veteran artists, especially independent ones, already know how to promote themselves and their work, and many of them have built strong relationships with clients over time. I fear that as an emerging artist, I still don’t have these connections and instead find myself competing directly with AI.”

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

While approximately 85 percent of countries included cultural and creative sectors in their national development plans, only 56 percent outlined specific cultural objectives, highlighting a clear disconnect between broad commitments and concrete actions. Furthermore, only 37 percent of countries surveyed reported having measures to support cultural workers operating in environments rooted in political instability, protracted conflict or displacement.

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

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

Colombian independent expert Viviana Rangel emphasized these imbalances when speaking to 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 artificial intelligence systems often leave out the perspectives and contributions 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 public funding for cultural sectors remains surprisingly low (below 0.6 percent of global GDP) and is expected to decline further in the coming years.

Furthermore, progress in ensuring universal support for cultural workers remains uneven, with a pronounced gender gap affecting female artists. Although the proportion of women leading cultural institutions around the world 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 equitable policy reform and coordinated global action. Through its latest report, UNESCO calls for renewed investment, a more balanced market and stronger collaborative 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 a vital source of economic opportunity, cultural diversity and social cohesion in a rapidly digitalizing world.

IPS UN Office Report

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