The worldwide art market, worth billions of dollars, has historically been a traditional and restricted sector. However, as artificial intelligence advances, the art industry is shifting towards a more democratised and accessible market, introducing the phenomenon of AI-based art.
AI-powered technologies can now generate creative works of art, question the validity of existing works, and even estimate their worth. While some are concerned about AI’s ability to disrupt the industry, others view it as a way for artists to reach a larger audience and collectors to access a greater range of investment options.
According to an Art Basel and UBS estimate, the global art industry will be worth $64.1 billion in 2020. However, the market has been on a rising trend in the last decade. The worldwide art market was valued at $39.7 billion in 2011, representing a 61% increase over the previous ten years.
It is important to note that these data are estimations, and the art market is notorious for its lack of openness, making determining the exact value of the market complex.
There are several reasons why the value of the art market has been on a rising trend over the last decade:
These factors have contributed to the overall rise in the art market’s value over the last decade. However, despite the growth in the traditional market, there is a continued focus on AI-based art.
AI-based art is artwork that is made or aided by machines. This can take various forms, from entirely created art pieces generated by algorithms to works that utilise AI technology in their development or presentation. AI-based art may use multiple AI models, such as machine learning and computer vision, to create one-of-a-kind and creative artwork.
Machine learning is utilised to produce art by training algorithms on vast datasets of existing art. These datasets teach the algorithm patterns and styles, which they then employ to create new works. In contrast, computer vision allows editing and improving existing pictures and synthesising new images based on visual inputs.
There are several platforms and websites that offer tools for creating AI-based art:
DeepArt.io: A platform that allows users to upload an image and have it transformed into a unique piece of art using AI algorithms.
Pikazoapp.com: An app that uses AI to remix existing images and turn them into unique works of art.
Let’s Enhance: An AI tool to upscale and enhance images.
RunwayML: An open-source platform that offers a wide range of AI models for creative purposes, including art.
Artbreeder: A platform that allows users to breed unique art pieces by combining existing art and AI algorithms.
Online markets, cryptocurrency-based marketplaces, and direct sales are all methods for selling AI-based art. Artsy and Saatchi Art, for example, offer a forum for artists and collectors to buy and sell art, including AI-based art. Cryptocurrency-based marketplaces such as SuperRare and Rarible enable the purchase and sale of AI-based art using cryptocurrency.
Artists can also sell their AI-based paintings to collectors directly through their websites or personal networks. Furthermore, galleries and shows specialising in digital and new media art may be viable platforms for selling AI-based art.
The ideal method for selling AI-based art will be determined by the artist’s aims, target audience, and genre of work. Portrait of Edmond de Belamy, made by the Paris-based art collective Obvious, is one of the most valuable AI-generated art to date. That painting sold for $432,500 at a Christie’s auction in October 2018.
Despite the continuous expansion of the traditional art business, interest in AI-based art is expanding. This can be attributable to a variety of factors.
For starters, AI-based art provides a more accessible and democratised market, enabling a broader spectrum of people to engage as producers or consumers. Because AI-generated artwork has lower production costs than conventional art, they are more affordable to a broader audience.
Furthermore, the application of AI in art expands the definition of art and offers new avenues for creativity and self-expression. Some perceive the emergence of AI-based art as providing new investment opportunities in the form of one-of-a-kind artwork made by robots.
Finally, the use of technology and artificial intelligence in the art business simplifies and improves procedures from conception to sale. These characteristics, taken together, lead to the rising interest in AI-based art, even as the traditional art industry expands.
Advertising and marketing, film and video game creation, and fashion and textile design are some of the major industrial use cases for AI-based art.
AI algorithms can create new pictures or improve old ones for use in advertising and marketing materials, easing the creative process and allowing for more remarkable design and visual effects versatility. In 2022, Heinz went viral after asking AI to draw its interpretation of ketchup.
AI algorithms can be used to build virtual sets, characters, and special effects in the film and video game industries, possibly decreasing the time and expense associated with traditional production techniques.
AI algorithms can augment the fashion and textile design sectors by producing new patterns and designs for textiles, as well as aid in the design process by giving suggestions and coming up with new ideas.
AI-based art and imagery are also being applied in fields such as interior design, product design, and architecture, to name a few. The application of AI in these industries is opening new avenues for creative expression and problem-solving. It has the potential to transform how art and design are created and consumed.
The use of AI in creating art is a relatively new field, and there are several challenges and risks associated with AI-based art. One of the main challenges is the lack of a clear legal framework.
Currently, there is no consensus on whether AI-generated art can be considered a work of authorship and who should own the rights to such works. This lack of clarity can lead to disputes over ownership and copyright and could stifle the growth of the AI-based art market.
A further challenge is evaluating the quality and value of AI-generated art. Unlike traditional artworks, which are typically evaluated based on the skill and talent of the artist, the value of AI-generated art is often tied to the technology used to create it and the algorithms that drive it. This can make it difficult to determine the actual value of an AI-generated artwork and can lead to inconsistencies in pricing and sales.
Another risk associated with AI-based art is the potential for the widespread use of AI to lead to a homogenisation of artistic styles and techniques, resulting in a lack of diversity and originality in the art market. There is also a risk that AI-generated art could be used for unethical purposes, such as creating deep fake images or generating false information.
There is also the issue of privacy and data protection. AI algorithms are trained on vast amounts of data, and it is crucial to ensure that this data is appropriately protected and that the use of AI algorithms does not violate the privacy of individuals. There is also a risk that AI algorithms could perpetuate biases and stereotypes present in the training data, leading to further marginalisation and discrimination.
Despite these challenges and risks, there is the potential for AI-based art to bring new opportunities and excitement to the art market, making it more accessible and allowing for new forms of creative expression. By embracing and carefully managing the challenges and risks associated with AI-based art, it is possible to unlock its full potential and create a new era of artistic innovation.
The impact of AI-based art on the art market and traditional industries is a subject of ongoing debate and discussion. Some believe that AI-based art has the potential to bring new opportunities and excitement to the art market, making it more accessible and allowing for new forms of creative expression. At the same time, there are concerns that the increasing use of AI in art creation could devalue traditional art forms and reduce the importance placed on the artist’s hand and personal touch.
In traditional industries such as advertising, interior design, and product design, the use of AI-based art and images can bring greater efficiency, cost savings, and provide new opportunities. However, there are also concerns that the increasing reliance on AI in these industries could lead to a loss of unique perspectives and human touch and potentially result in a homogenisation of design.
Whether AI-based art will be good or bad for the art market and traditional industries remains to be seen. The impact of AI-based art will likely vary depending on context and use case, but its meteoric rise so far is a marvel in itself.
Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.
The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group, www.deltec.io.
The co-author of this text, Robin Trehan, has a bachelor’s degree in economics, a master’s in international business and finance, and an MBA in electronic business. Mr. Trehan is a Senior VP at Deltec International Group, www.deltec.io.
The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees.
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