“AI will take millions to unemployment!”

“AI is the perfect partner for freelancers and solo entrepreneurs!”

“Artists are getting their creations stolen by AI platforms!”

“AI will replace you within the next [insert a random number here] years!”

“With AI tools I can finally turn my business plan into reality!”

“Why hire a designer when AI can generate a ‘free’ logo for me?”

“I hate AI!”

“I love AI!”

You have probably heard/read some of those sentences - or even said them yourself.

Yeah, AI is not exactly a new topic, but over the last few years, the discussions around it have become more and more intense, especially when it comes to its effect on different industries and jobs - from creating simple texts to crafting complex high-quality videos.

Back in March, in edition #30, we talked about Creators & Gig economy in Web3. Today, we’ll start exploring the intersection between this sector and AI.

The current state of the Creator Economy

Talk about a wild ride - the Creator Economy, often seen as just a “small gigs” thing or a not-that-relevant industry, is absolutely exploding!

The numbers vary, but different sources point to a $250-billion market, and on track to swell up to $500 billion by 2027 (!!).

But before proceeding, we better get this out of the way:

“What is ‘Creator Economy’”?

We are talking about a dynamic, diverse ecosystem that connects creators (surprising, right? 😅), audiences, agencies, digital platforms.

In short, creators profit from sharing their work, while audiences get to experiment with customized content. In between all this, brands can access niche markets (that creators’ followers). And this whole thing usually takes place on digital platforms (think Youtube, TikTok, etc.)

Sure, there’s much more to it, but you get the idea.

There’s a super interesting report (from 2023) by ConvertKit that brings different metrics and insights on this sector, including this one, that shows that nearly 50% of the participants had a full-time, “regular” position outside their creator role.

Advancements in technology and the rise of platforms like TikTok, YouTube, and Instagram have dismantled barriers, making it super easy - or at least “way easier” - for creators to showcase their content/skills.

The same report I mentioned above has a simple, useful answer to the question “Who are the creators?”:

“The creator economy is made of coaches, consultants, musicians, artists, educators, influencers, podcasters, and anyone else who earns a living online through digital and physical products or services.
Creators build global audiences to teach, inspire, connect, and entertain”.

So whether you're a creative artist, a beauty guru, or a culinary expert, there's certaily people willing to consume your content.

And by “consuming” I mean “willing to pay” → Either by actually buying whatever service/product you sell or by investing their time into watching the content you put out. Either way, at the end of the day, we are talking about monetizing your skills.

Speaking of monetizing…

For a long time, the main revenue stream for many creators came from ads - and here we are talking about both the “automatic” ones (think of the YouTube ads we watch during videos) and the “partnership” ones when they would use/talk about specific products they had partnerships with.

While both methods are still valid, there are currently many other options, from direct “tipping” to selling products without having to go traditional banking or payment platforms.

The thing is: technology has opened A LOT of doors when it comes to creating ways of making money from our skillsets - regardless of which skills we are talking about.

And as I said in the opening segment, “over the last few years, the discussions around AI have become more and more intense” - and most of these discussions are around how AI tools can impact the Creator Economy, with the tools it brings to the table.

From anywhere to anywhere…

And as obvious as it may sound, we can’t ignore this factor in the current Creator Economy → Global reach.

If in the past a painter would have to sell their creations in their home city/country and a cookie shop would only get customers that walk by its door, we can now reach audiences all over the world.

You can be a singer in Seoul with fans in São Paulo; a guy with a Pink Beanie in Lisbon with followers from New York; or a talented ceramic artist based in Johannesburg who sells custom-made pieces to clients in Sydney.

So now that we’ve discussed some aspects of the current scenario in the Creator Economy, it’s time to jump into some more “practical” aspects of it.

But before we proceed, let’s take a quick look at the main things we’ve covered so far:

→ Huge (and growing) market: With some predictions aiming at ~$500 billion by 2027, the Creator Economy is one of the hottest markets to watch.

→ Tech and Platforms: AI, Social Media, etc. These are the backbones, providing the tools and spaces for creators to thrive.

→ Revenue Streams: Diversifying beyond ads, today’s creators tap into direct payments, merchandising, and more.

→ Global impact: From local content creators to global influencers, this is a worldwide phenomenon.

→ Not slowing down: The trajectory is set for even more growth, innovation, and opportunities.

AI’s impact: How the Creator Economy is being changed

“Game changer” - as cliché of an expression as it is - is no exaggeration here. For creators around the globe, AI has proven to be not “just” a way of making tasks easier (which is already a huge achievement), but it's about revolutionizing the way creators operate, expanding their reach, and enhancing their ability to monetize their talents.

“But Diego, this AI thing is still very niched. Not everybody is using it!”

Well, yes, not “everybody”. However, according to Marketing Dive, around 91%, of creators have used generative AI to create content.

Let’s face it: most of us have already used - at the VERY least - one or two AI tools, whether it was Midjourney for some logo-creation-inspiration-ideas-session or ChatGPT for that last-minute report that no one will read.

This widespread adoption speaks volumes about AI's role as a pivotal role in content creation, task automation, and other creators-related solutions, helping amplify the creative (and financial) potential of individuals.

Nearly 80% of creators report that AI significantly reduces their workload, and a similar majority expect it to speed up their content creation timelines.

I get why some people may be reluctant about AI’s adoption - or even fully against its growth, but the improved efficiency brought by it has the potential to lead to more opportunities and eventually to higher earnings → Some sources show that 78% of creators anticipate an increase in income due to AI integration.

A standout example of AI's impact comes from a collaboration between Versace and the innovation firm Billion Dollar Boy. They utilized AI to launch the "New Digital Artists" campaign, which featured the Greca Goddess Handbag.

This campaign, leveraging the creative capabilities of 25 AI-driven creators, achieved a remarkable 1,460% play rate boost from AI-generated content, culminating in 4 million organic views on a single asset.

I’ve mentioned this example just to briefly showcase applications that go well beyond the “Using ChatGPT to create a college paper” that is usually brought up.

For another “exotic” example of AI use, I recommend you check out the “Generative Agents: a virtual town fueled by AI” segment in our edition #13. If you are a content creator, you’ll certainly think of many uses for the concept discussed there.

My point is: in the Creator Economy (and not only), there’s MUCH more than just generating texts or images - we are talking about a whole set of tools that can take the industry to higher levels.

Before we move on to the next topic, here’s the TL;DR version of how AI can affect the Creator Economy:

🤖 Widespread Adoption: The integration of AI in content creation is already mainstream, reflecting a major shift in production dynamics (so no “WEN” - it’s already here).

🤖 Economic Benefits: AI is significantly boosting efficiency and potential earnings within the creator economy.

🤖 Creative Expansion: AI is enabling creators to explore new artistic/creative/financial/automation horizons, evidenced by successful use cases, from small accounts to big brands.

🤖 Need for Regulation: As AI reshapes the creative space, there's a growing call for frameworks that ensure fair play and protect intellectual properties.
We’ll certainly see more on this topic over the next months, especially with governments around the globe trying to legislate on AI-created content and/or how to control/manage it (good luck doing so 😆).

I guess we can agree that AI's role in the creator economy is both transformative and expansive, offering new opportunities while also presenting new challenges.

But for what’s worth, I don’t see any slowing down on the mainstream adoption. If that’s the case, we are very well positioned as being “early adopters”.

On top of that, the whole concept of Social Media is changing (see edition #19), which means even more space for creators - which also include their AI tools.

Now it’s about making the best of this opportunity.

This is not the final step

I added the “An overview” bit in the title of this edition as a reminder that this is far from being our last time covering this topic.

In fact, I’m currently finishing up another “episode” in which we’ll be exploring some cool real-world applications for Web3 in this industry.
For now, I wanted to set the stage for this topic - which, by the way, is one I’ve been exploring for a while now.

So stay tuned: We’ll soon be back with more content about the Creator Economy.

See you soon.

#LFGrow
Diego Borgo