AI's ethical implications for media companies

ARTICLE | September 17, 2024

Authored by RSM US LLP

As artificial intelligence continues to disrupt the media and entertainment sector, businesses are encountering unprecedented opportunities and challenges. AI is reshaping how content is crafted, distributed and consumed.

This transformative wave also introduces ethical dilemmas, especially in the realms of music rights and video/film production. As AI plays a new role in composing and directing, the industry must navigate implications for intellectual property rights and questions AI raises about the nature of creativity and ownership.

AI in music: Who strikes the copyright chord?

AI's role in composing and producing music is not just a futuristic concept—it's happening now, stirring a debate over the essence of ownership and creativity. When an AI algorithm produces a tune, who should take a bow? Is it the developer behind the AI, the user who developed the melodies from the machine or the AI itself, an independent digital maestro? This question is as pertinent to business operations as it is philosophical.

Consider the case of an AI program that can digest the entire oeuvre of The Beatles or Beethoven and then produce an original piece that sounds like a long-lost track from either. The song feels familiar, yet it's undeniably new. Here lies the crux of the dilemma: if AI can learn from existing music to create something fresh yet similar, who holds the rights to this new creation?

Traditional copyright laws are not equipped to handle this new performer in the industry. Now, we're in uncharted waters, where AI-generated music is streaming into our playlists. Musical artists, already navigating the transition to digital and streaming models, find themselves at another crossroad; if AI can produce hit songs with minimal human input, what does that mean for human musicians? Will AI dominate the future music charts, and if so, how will that affect the livelihoods of traditional artists?

Media companies can address these questions in a variety of ways, but some strategies and approaches that can help them adapt include:

• Innovative copyright models: Develop new copyright frameworks that recognize AI-generated content while protecting human creativity.
• Revenue-sharing agreements: Implement agreements where revenues from AI-generated content are shared among developers, users and original content creators.
• AI collaboration: Encourage collaboration between AI and human artists to create unique and innovative content.
• Transparency in AI usage: Clearly disclose the use of AI in music production to maintain trust with consumers and artists.

The deepfake dilemma in video and film

In the video and film space, AI’s ability to create convincingly realistic deepfakes introduces a spectrum of ethical quandaries. Deepfakes leverage sophisticated machine learning algorithms to create or alter video content, making it possible to fabricate scenarios or statements that never actually occurred. While the technology has the potential for legitimate uses, such as in filmmaking and entertainment, its capacity for misuse has raised alarms across various sectors.

One notable example of deepfake technology is its use in the film industry to de-age actors or resurrect performances from those who have passed away, as seen with Carrie Fisher's appearance in "Star Wars" in 2019. On the darker side, a public service announcement in 2018 by Jordan Peele used a deepfake of former President Barack Obama to illustrate the technology's dangers, showing Obama seemingly delivering a speech he never actually gave.

On social platforms, deepfakes have been used to create fake celebrity endorsements, spread misinformation and even manipulate political narratives. A striking instance occurred during the 2020 U.S. election cycle, where deepfakes were employed to create misleading videos of political figures, attempting to sway public opinion or discredit individuals.

Areas of focus that can help businesses tackle issues related to deepfakes include:

• Regulatory compliance: Stay updated with the latest regulations regarding deepfake technology and ensure compliance.
• Content verification systems: Implement advanced verification systems to detect and flag deepfakes.
• Public awareness campaigns: Educate the public about the existence and risks of deepfakes to build awareness and reduce the impact of misinformation.
• Ethical guidelines for AI use: Develop and adhere to ethical guidelines for using AI in content creation to ensure responsible usage.

Looking ahead: A new paradigm

Addressing the ethical, legal and economic challenges of AI-generated music and video may require a new paradigm—one that considers the collaborative nature of AI and human creativity. This paradigm shift might involve innovative copyright models, revenue-sharing agreements and perhaps even new forms of intellectual property rights tailored for the AI age.

The music industry, lawmakers and the AI community must engage in a constructive dialogue to shape a future where technology enhances creativity without undermining the value and livelihood of human artists.

Other key actions for media companies include:

• Engage in policy advocacy: Collaborate with policymakers to shape regulations that balance innovation with intellectual property protection.
• Invest in AI technology: Invest in AI technology not just for content creation but also for managing rights and distributions.
• Foster innovation: Encourage a culture of innovation where AI and human creativity can coexist and complement each other.
• Monitor AI developments: Keep up to date on the latest developments in AI to anticipate and adapt to changes in the industry swiftly.

AI's integration into the media and entertainment sector offers significant opportunities and challenges, particularly in content creation and intellectual property rights. Media companies must adapt by developing new copyright frameworks, establishing ethical guidelines for AI use and implementing advanced content verification systems to address issues like deepfakes.