AI Will Save Music Creativity

Navigating the New Economics of AI in Music

Introduction

As the digital tide surges forward, artificial intelligence (AI) in music composition is not merely an adjunct to the industry but a formidable disruptor poised to redefine cost structures and creative processes. The migration of record companies, movie studios, and game developers toward AI-driven music production is propelled by straightforward economics: AI promises reduced costs and increased reliability devoid of the unpredictabilities associated with human artists. However, this shift does not herald the demise of human creativity in music. Instead, it underscores a renaissance of art for art’s sake where the intrinsic value of creation becomes the primary motivator, untethered from commercial imperatives. Much like how big oil inadvertently saved the whales, big tech is poised to save human creativity.

Historical Disruptions in the Music Industry

The music industry has a long history of technological disruptions that have reshaped how music is created, distributed, and consumed. Each of these disruptions has been met with initial resistance but has ultimately led to greater accessibility and diversity in music.

• Recording Technology: The ability to record music revolutionized the industry by allowing music to be captured and replayed, making it accessible to a wider audience. This shift enabled artists to reach listeners far beyond live performances.

• Vinyl Records: The mass production of vinyl records made it possible to distribute music on a large scale. This technology democratized music consumption, allowing people to build personal collections and enjoy music in their homes.

• Cassettes and CDs: The advent of cassettes and CDs further transformed the industry by making music portable and easier to share. The ability to copy and share music on cassettes and later CDs introduced new challenges related to copyright but also expanded the reach of music.

• Napster and Digital Downloads: The rise of Napster and digital downloads in the late 1990s and early 2000s disrupted traditional distribution models. While it posed significant challenges to the industry, it also paved the way for new business models and greater access to music.

• Home Recording Studios: The development of affordable recording equipment and software has empowered musicians to create professional-quality recordings in their home studios. This democratization of music production has lowered the barriers to entry, allowing more artists to produce and distribute their work without the need for expensive dedicated recording facilities.

• Streaming Services: Today, streaming services like Spotify and Apple Music have become the dominant mode of music consumption. These platforms offer vast libraries of music at the fingertips of listeners, making it easier than ever to discover and enjoy new music.

Despite these disruptions, quality music has consistently found a way to survive and thrive. The abundance of music available today is a testament to the resilience and adaptability of the industry.

Economic Theory: Supply, Demand, and Cost Reduction in Music Production

To understand the economic theory behind this thesis, it's essential to consider basic concepts of supply, demand, and cost reduction. In the traditional music industry, supply is influenced by the availability of talented artists and the resources required to produce music. Demand is driven by consumer preferences for music that resonates emotionally and culturally.

AI changes this dynamic by significantly reducing the cost of production. With platforms like Suno Inc., which can generate full-length songs from text prompts, the cost and time associated with human labor in music creation are drastically lowered (Wheatley, 2024). This is akin to the principle of economies of scale, where increased production leads to a reduction in the per-unit cost. In this case, AI enables mass production of music at a fraction of the cost of hiring human musicians and composers.

Concurrently, the proliferation of affordable home recording technology has already begun to reduce production costs for human musicians. Musicians with an idea can now capture the basics in their home studios and even finish their recordings there, eliminating the need for expensive studio time. This development allows musicians to compete more effectively with AI-generated music by leveraging their creativity and the human element, which adds a unique and irreplaceable dimension to their work.

The Role of Intrinsic Motivation in Creativity

The allure of creating music transcends economic benefits. It embodies self-expression, cultural exploration, and personal satisfaction—elements deeply rooted in the human condition. The YouTube content creator Venus Theory discusses in his videos the dichotomy faced by musicians in an AI-saturated market; while AI may streamline production and lower costs, the essence of music as a form of personal expression remains largely unautomatable (Venus Theory, 2022, 2023).

This emerging landscape suggests a bifurcation in music production: commercially driven AI compositions on one side and human-centered creative expressions on the other. As AI handles more of the routine aspects of composition, human artists will find greater freedom to explore avant-garde territories and innovate without the constraints of commercial pressures. This could lead to a richer cultural tapestry where music is created for its intrinsic value, not merely its commercial potential.

Artists often create music for the sheer joy of the process, the emotional release it provides, and the connection it fosters with listeners. This intrinsic motivation can lead to greater creativity and uniqueness as artists are not bound by the need to produce commercially viable work. The freedom to experiment and push boundaries without economic constraints can result in innovative and original compositions that might not emerge in a commercially driven environment. This concept of "art for art's sake" allows for a purer form of creativity where the primary goal is artistic expression rather than financial gain. Research indicates that intrinsic motivation significantly enhances the creative process and the quality of the final product.

Supporting Intrinsic Motivation: Insights from Daniel Pink's "Drive"

Daniel Pink, in his seminal book "Drive," explores the underlying drivers of human motivation and creativity. Pink builds on decades of research that show financial rewards often hinder creativity, contrary to traditional business assumptions that higher pay equates to better performance. He posits that the true wellspring of creativity lies in intrinsic motivation—where personal satisfaction, intellectual fulfillment, and the joy of the creative process drive individuals to excel (Pink, 2009).

Pink's insights suggest that structuring work environments to foster intrinsic motivation—autonomy, mastery, and purpose—can lead to higher levels of innovation and creativity. This aligns perfectly with the scenario in the music industry where AI can handle routine tasks, allowing human musicians to focus on what they love: creating music. This freedom from commercial pressures can unleash unprecedented levels of creativity and innovation in music, as artists are motivated by their passion rather than economic incentives. In other words, human-made music will get better.

AI's Contribution to Music: Insights from Experts

Stef Van Vugt, founder of Fruits Music, argues that AI music startups are creating better-sounding music than most human-made songs on music streaming services. He suggests that this is indicative of a ‘new normal’ that’s already taking hold of today’s music business and will define the music business of tomorrow. He predicts that new rightsholders, particularly AI-driven music, will continue to take market share from the largest music rightsholders in the years ahead (Van Vugt, 2024). Van Vugt identifies two main threats to traditionally produced music. The first is that platforms, not labels, are becoming music’s primary influencers and potentially content owners. He uses the example of Spotify, which is reducing human influence on playlists and streaming outcomes in its “Year of Efficiency.” The second threat is the increased dilution of market share by AI-generated music. Despite efforts by traditional music companies to fend off this threat, Van Vugt argues that people are just going to love AI-generated music. He concludes by suggesting that major music rightsholders will need to change their business models to compete for attention, relying on those who can better influence, manage, and amplify social media and streaming algorithms.

Stef Van Vugt's perspective underscores the disruptive potential of AI in the music industry, pointing to the quality of AI-generated finished tracks. However, this view doesn't fully consider the enduring human element in music creation. Human musicians will continue to make music and ultimately elevate their craft.

Rick Beato, a popular YouTuber with over 4 million subscribers, shared his insights on the Through The Web Podcast. Beato, who has an extensive background in music production and theory, discussed the limitations of AI in truly replicating the human touch in music. He emphasized that while AI can generate technically proficient music, it lacks the emotional depth and personal connection that human musicians bring to their work. Beato stated, "AI can create music that sounds good, but it can't replicate the soul and emotion that a human musician pours into their work" (Through The Web Podcast, 2024). He also highlighted the importance of the creative process for musicians, noting that the act of creating music is often as important as the final product. This intrinsic motivation drives many artists to continue creating regardless of economic incentives.

Ted Gioia, a renowned music historian and critic, also weighed in on the topic during an interview with Rick Beato. Gioia discussed the historical context of technological disruptions in the music industry, from the advent of recording technology to the rise of streaming services. He pointed out that each technological shift—from vinyl records to cassettes, CDs, Napster, and now streaming—has been met with resistance but ultimately led to an expansion of music consumption. Gioia emphasized that good music survives all these disruptions, as there is more music available to consume than ever before in history (Beato, 2024).

Big Tech Will Save Human Creativity

Drawing a parallel to Walter Williams' article "Does it count?" we see a similar pattern in the music industry. In the 19th century, the whaling industry was on the brink of driving whales to extinction due to the high demand for whale oil. However, the advent of kerosene, marketed by David Rockefeller, and later the incandescent light bulb by Thomas Edison, inadvertently saved the whales by providing alternative sources of illumination. This shift was driven by the pursuit of profit, not environmental conservation, yet it resulted in a significant positive impact (Williams, 2002).

Similarly, big tech's advancements in AI are poised to save human creativity. While the primary motivation for developing AI in music production may be economic efficiency and profitability, the unintended consequence is the liberation of human artists from routine tasks, allowing them to focus on higher levels of creativity and self-expression. AI can handle the repetitive and mundane aspects of music production, enabling human musicians to explore new artistic frontiers and push the boundaries of their craft.

The Market's Verdict and the Path Forward

Ultimately, the market will serve as the arbiter between AI-generated and human-created music. Consumer preferences, shaped by both quality and novelty, will dictate the trajectory of music production. Ironically, while AI technology aims to streamline and dominate music production, it may inadvertently elevate the demand for human-created music. The free market's dynamics, as historically observed with other technological integrations, often favor a hybrid model where AI enhances human creativity rather than supplanting it entirely.

As we stand at this crossroads, the music industry is poised for a profound transformation. While AI offers scalability and economic efficiency, the enduring demand for music that resonates on a human level suggests that the artistry of human musicians will continue to hold significant value. The market may well determine that this human-created music, driven by intrinsic motivation and emotional depth, is not only culturally significant but also economically viable. The challenge and opportunity lie in leveraging AI as a tool that augments rather than diminishes the human touch in music, ensuring that the unique qualities of human creativity thrive alongside technological advancements.

Predictions for the Future of AI and Human Collaboration in Music

Looking ahead, the future of AI and human collaboration in music appears promising. As AI technology continues to advance, it is likely that we will see more sophisticated tools that can assist human composers in various aspects of the creative process. For instance, AI will be used to generate initial musical ideas or to handle repetitive tasks, allowing human composers to focus on the more nuanced and expressive elements of their work.

Moreover, the integration of AI in music production could lead to new forms of artistic expression and innovation. By combining the strengths of both AI and human creativity, artists may be able to explore new musical genres and styles that were previously unimaginable. This collaborative approach could result in a richer and more diverse musical landscape where the unique contributions of both AI and human composers are celebrated.

Conclusion

The advent of AI in music production is not a death knell for human creativity but rather a catalyst for its resurgence. The economic theory of supply, demand, and cost reduction shows how AI can democratize music production and open new avenues for human creativity. Insights from Daniel Pink's "Drive" and interviews with musicians and industry experts underscore the enduring value of intrinsic motivation and passion in music creation. The historical context of technological disruptions in music further illustrates the adaptability of the music industry and the resilience of human creativity. Just as the advent of big oil inadvertently saved the whales, the rise of AI in music may well foster a renaissance of human creativity in music. As we navigate the new economics of AI in music, we may find ourselves not in a dystopian landscape of AI-generated tunes but in a world where music created out of passion and self-expression is more deeply appreciated than ever before.

References

Beato, R. (2024, May 14). Ted Gioia on AI’s threat to music [Video]. YouTube.

Pink, D. (2009). Drive: The surprising truth about what motivates us. Riverhead Books.

Through The Web Podcast. (2024, April 30). Why AI can never truly replace all musicians feat. Rick Beato [Video]. YouTube.

Van Vugt, S. (2024, May 23). The brutal reality: Power is shifting to AI-generated music and algorithmic discovery. Music Business Worldwide. https://www.musicbusinessworldwide.com/brutal-reality-music-ai-the-opportunity

Venus Theory. (2022, December 12). How AI might make a lot of musicians irrelevant [Video]. YouTube.

Venus Theory. (2023, May 16). Why make music when nobody cares [Video]. YouTube.

Wheatley, M. (2024, May 21). Generative AI music maker startup Suno raises $125M in funding. SiliconANGLE. https://siliconangle.com/2024/05/21/generative-ai-music-maker-startup-suno-raises-125m-funding/

Williams, W. (2002, June 19). Does it count? Jewish World Review. Retrieved from https://www.jewishworldreview.com/cols/williams061902.asp