Workshop on harnessing the contribution of creative

industries to Ethiopia’s sustainable development

Digitalisation, artificial intelligence
and the creative economy
Bruno Antunes
Trade in Services and Development Section
Trading Systems, Services and Creative Economy Branch
Division on International Trade and Commodities
We are not in Kansas anymore
The phrase “We are not in Kansas anymore”, famously uttered by Dorothy in the movie “The Wizard of Oz”
upon her arrival in the magical Land of Oz, symbolises a transition into an unfamiliar, transformative world. This
sentiment aptly captures how digitalisation and artificial intelligence have ushered the world, including creative
industries, into a revolutionary era far removed from conventional experiences.
 Digitalisation transforming creative economies
Digitalisation and artificial intelligence in the creative economy

Producing content Distributing content Consuming content

• Affordable digital tools lower entry barriers and • Digital tools improve cost efficiency in • Streaming technology shifted the way users
allow individual creators to innovate distributing content. consume content. Users moved from ownership
collaboratively (UNCTAD, 2022a). to access.
• Some websites and platforms allow artists to
• Digital tools improve cost efficiency in producing reach global audiences (International Trade • In the music industry, users move from
content. Centre, 2019). purchasing albums or songs to monthly
subscribing music access services (International
• Players in creative industries have been among Trade Centre, 2019).
the fastest to adopt digital technologies,
impacting their business models (UNESCO
Institute for Statistics, 2016).
 Producing content >
Creating content
• Artificial intelligence (AI) created the script for a
science fiction movie in 2016 and selected areas of the
sequel in 2017. The 1st movie had unnatural
storylines, but the sequel was more fluid, confirming
Digitalisation and artificial intelligence in the creative economy

that current technology works better with people.

• Automated journalism generates news articles by
scanning large data, ordering key points and inserting
details (names, places, statistics and figures). In music,
AI analyses data to find patterns to suggest melodies
that may inspire artists. A software launched a song in
The Beatles style in 2016 and the first AI album in
2018.
• AI can transform images of faces to add age or change
hair colour. AI models static images to create moving
images. AI made a video of the Mona Lisa speaking.
• Augmented and virtual reality are computer
technologies that create a different environment.
Augmented reality adds digital layers to the physical
world, and virtual reality creates an immersive
experience through a fully simulated environment.
Augmented reality can expand experiences in movies
and theatres, and virtual reality is used in health
services for surgical simulations and physical therapy.
 Producing content >
Enhancing content, post-production,
compressing data
• AI improves contrast, colouring, restoring
content or adding visual special effects.
Contrast makes objects distinct. Colouring
Digitalisation and artificial intelligence in the creative economy

transforms black-and-white content or restores

colour to aged films.
• AI increases image and video resolution.
Upscaling imagery became popular, for
example, to convert legacy content to be
compatible with modern formats.
• AI enhances content to add visual special
effects, a type of enhanced animation. Movies
can combine physics models with algorithms to
create 3D. Head-mounted cameras and facial
tracking markers can transform actors’ faces
into characters.
• Compressing data, audio and video, improves
quality and user experience. Compressing data,
notably video, is necessary to reconcile demand
with network capacity.
 Producing content >
Extracting, enhancing and analysing
information,
• AI segments and recognises content, detecting and
tracking salient objects, combining images, and
producing 3D content. AI performs statistical
Digitalisation and artificial intelligence in the creative economy

analysis and extracts information from the signal.

• AI categorises texts, retrieves and analyses
content, and provides recommendations and
intelligent assistant services. Categorising texts
generates summaries from full texts. AI can
recognise audio and objects to analyse the media.
Images are retrieved based on points, lines, shapes
and colours. Music is retrieved based on features
from the sound.
• Learning systems can assess what people look
online, for how long, and overall online behaviour
and preferences. This allows to target ads and to
inform how and when to show ads. Analysing
content also allows recommending music or
movies. Intelligent assistants analyse information
to answer queries related to news or weather,
recommend songs, movies or directions, or
manage schedules and emails.
 Use of AI by creative industries >
Advertising
• AI increases efficiency of gathering, analysing,
and sorting vast amounts of data.
•
Digitalisation and artificial intelligence in the creative economy

Some marketeers use data to spot trends and

make advertising decisions. For example, an
artificial intelligence platform generates
multiple ads automatically based on the
marketeer’s specific goals. The algorithms
conduct tests and chooses those deemed most
effective.
• This called for extensive investment in
expanding computing power to train more
intricate AI models on larger datasets. This
generated numerous ad variations, evaluate
their resonance with audiences, and saturate
the market with the variants demonstrating the
best performance. Reports from advertisers
note that this platform enhances the
performance of advertising campaigns
(Financial Times, 2023).
 Use of AI by creative industries >
Architecture
• AI addresses aesthetics, building regulations,
structural efficiency, socioeconomic context, and
cultural environment, from planning and design to
construction and maintenance.
Digitalisation and artificial intelligence in the creative economy

• AI can feed research and planning to support topology

optimisation and urban planning considering
regulatory compliance, solar radiation predictions, etc
(As and Basu, 2021).
• AI reviews prior architectural knowledge to help
design choices. This can cover data on behaviour of
users, historical and aesthetic solutions for a given
socio-economic and cultural context, notions of
heritage and relationships with the territory. Data
analytics enables smart building for sustainability.
• AI can assist ideation of architectural design by
providing out-of-the-box scenarios that stimulate
architects’ creativity. At the design iteration stage, AI
can improve accuracy, increase efficiency, and tailor
solutions to a client.
• AI can facilitate production by relying on robot
fabrication. AI supports maintenance by analysing
video feeds and detecting weaknesses requiring
preventive or corrective maintenance.
 Use of AI by creative industries >
Arts and crafts
• In the crafts industry, algorithms can assist design.
People transition to design, maintenance, and
programming as machines gradually take over
Digitalisation and artificial intelligence in the creative economy

routine tasks. This enhances efficiency, allowing

machines to handle repetitive and challenging
tasks (Eskak and Salma, 2021). People can also do
digital crafting using generative AI.
• AI can facilitate virtual art galleries and exhibitions
in the arts. Artists leverage AI to craft immersive
digital showcases that are accessible globally.
• Some most innovative AI -based art projects are in
Africa. A Nigerian artist employs AI in a multimedia
installation that generates images and sounds
based on visitor movements. A Kenyan artist
combines similar algorithms with traditional
painting techniques to create unique digital
portraits exploring identity and representation in
contemporary African art (Faster Capital, 2023).
 Use of AI by creative industries >
Film industry
• AI can create and analyse screenplays in pre-
production, analyse data and audience
preferences, and create more realistic special
effects (Anantrasirichai and Bull, 2022). Machine
Digitalisation and artificial intelligence in the creative economy

learning tools can arrange video clips, helping

editors to find specific camera angles and dialogue
scenes. AI assists in restoring old prints (Wired,
2023).
• AI can process screenplays as inputs and generates
analytics about commercial viability and
recommendation to greenlight or reject. These
analytics can include character’s likeability,
emotions by scene, measurements of gender
equality, potential audience, predictions of gender
and age breakdown of target audience, predictions
of audience satisfaction ratings, financial forecasts,
return on investment and information on which
territories the screenplay is likely to find a
receptive audience (NECSUS, 2020).
• AI can affect movie jobs (e.g., writers). An
animation studio has recently cut jobs for 4%. A
premium cable network and streaming service, is
undergoing a 10% reduction in its workforce (The
New York Times, 2023).
 Use of AI by creative industries >
Music industry
• AI can generate music using databases of existing
tracks (Arts Computing Office Newsletter, 2021),
and provide platform users with personalised
recommendations. This may help artists to
Digitalisation and artificial intelligence in the creative economy

produce music beyond known genres and options

for consumers to personalise content.
• In 2016, a computer science laboratory music team
released the first full song generated by AI, made
to sound like a The Beatles song (Arts Computing
Office Newsletter, 2021).
• AI dissembles songs into malleable components.
This allowed Paul McCartney to recover an old The
Beatles recording and make the final The Beatles
song without synthetically creating new material.
• AI brings challenges on copyright. AI synthesises
voices of existing singers. In some cases, this is
used by songwriters who want to show what a
specific artist would sound like on a track before it
is recorded. In other cases, the public creates AI-
generated music, raising concerns about
ownership. Clear policies on the unauthorised use
of artists’ work have yet to be established (The
Korea Herald, 2023).
 Figure. Use cases of artificial
Use of AI by creative industries > intelligence by news teams, 2023
News and media industry (1/2) (percentage)
• AI helps process efficiency with automated
summaries, conversion between text and speech,
image recognition, tagging, subtitles, and
transcriptions (Newman, 2023).
Digitalisation and artificial intelligence in the creative economy

• AI helps engagement by recommending, automating

web pages, optimising headlines and finding best time
to post (Newman, 2023). AI can generate financial
reports (FADEL, 2023) and traffic or property sales
stories (Media Voices, 2023).
• AI can suggest article topics and sources. AI can
analyse data to identify newsworthy stories. AI
detected news potential by identifying that a football
team had won for the first time in 40 matches. A story
can be customised generating several stories, each
using specific data for an area of a country (Media
Voices, 2023).
• AI assists in creating illustrative art (Newman, 2023),
generating social media content, personalising and
recommending, and translating (WordPress, 2023)
(Figure).
• The journalist remains responsible for checking,
clarifying, and adding value to the automated story,
for example by adding empathy, insight, judgement, or
customisation. Curation is by people (Newman, 2023).
 Use of AI by creative industries >
News and media industry (2/2)
• Deepfakes are computer-generated audio or video
creating the illusion of individuals saying or doing
things they never did (MIT Open Documentary Lab,
2021). Deepfakes exploited the vulnerability of
Digitalisation and artificial intelligence in the creative economy

image media to manipulation, making it hard to

distinguish between fact and fiction.
• The deepfake video project “In Event of Moon
Disaster” highlighted this issue by presenting an
alternate history of the Apollo 11 mission. The
project won an Emmy for Outstanding Interactive
Media in the documentary category. People need
media literacy skills to understand and assess
media (MIT, 2021). Other efforts should include
transparency, digital watermarking and moral
guidelines (Newman, 2023).
• AI can create asymmetry of benefits and costs in
the industry. Some may gain efficiency to focus on
higher value-added tasks, but others may lose jobs.
• Some firms rely on AI solutions provided by big
platforms. This increases dependence of some
news and media firms on technology firms
(Columbia Journalism Review, 2024).
 Use of AI by creative industries >
Performing arts
• AI can intervene throughout the whole process.
• AI can support text research by analysing vast
Digitalisation and artificial intelligence in the creative economy

amounts of literature, translating texts, and

suggesting scripts, narratives, choreographies
and characters.
• AI can support the production process by
drafting grant applications and project
proposals and increasing cost efficiency in the
production process.
• AI can help creating interactive environments
that respond to actors’ movements or changes
in the storyline, creating an immersive
experience for performers and audiences.
Performers can interact with automatically
generated visuals, augmented reality or sound
that respond in real-time, customising the
performance.
• Some artists use AI to analyse reactions from
the audience to improve engagement.
 Use of AI by creative industries >
Video game industry
• AI can improve design, interactivity, and
decision-making in the video game industry.
Digitalisation and artificial intelligence in the creative economy

• Video games increasingly strive to offer more

realistic and immersive experiences, often
integrating 3D visualisation, augmented reality
and virtual reality methods. AI algorithms have
been trained to design and develop interactive
storylines that respond to player choices.
• AI can also generate content in-game, which
refers to the automatic and random generation
of content such as levels, environments, and
rules. This builds personalised and fresh
experiences, giving individual players a sense of
autonomy and uniqueness in their gameplay
experiences (Anantrasirichai and Bull, 2022).
 Challenges and risks >
Quality
• AI content quality relies on algorithm’s performance
and on the database used. AI can be fed with some
data rather than others and prioritise some patterns
Digitalisation and artificial intelligence in the creative economy

and not others. This can reduce cultural diversity.

• People consume images, music, videos and news
through platforms whose algorithms’ criteria to
recommend content are not transparent or auditable.
They may be conditioned to platforms’ commercial
interests (European Parliament, 2020). Preferences of
most people to consume content of known references
may privilege recommendations of established rather
than new artists (Maekan, 2022).
• Quality concerns can disproportionately affect people
in developing countries. Most AI was trained with data
from people of developed countries. Outputs may not
serve interests of people in developing countries.
• AI is often trained for preferences by people in
developed countries and in English, putting at a
disadvantage people from developing countries which
are not English speakers (Foreign Affairs, 2023).
 Challenges and risks >
Appropriation
• Moral dimension discusses whether building on
work from others is acceptable. Economic
dimension discusses if adequate compensation is
provided for authors of appropriated work.
Digitalisation and artificial intelligence in the creative economy

• Moral analysis should be similar between code-

based and people-based art. AI trains with
databases and involves appropriation. But
appropriation is inevitable in art creation as all
artists have influences and aesthetic references.
Appropriation is formally acknowledged as an
artistic form (Karakaidou, 2019).
• Economic compensation is needed for the time
and talent put into people-based art. It is also key
when discussing AI centralised governance by
some tech giants. Many artists feeding the
algorithms’ databases have insufficient negotiation
power to claim appropriate compensation from
giant gatekeepers.
• This has a development dimension, as many
people in developing countries have less chances
to claim appropriate compensation and possibly
lower negotiation power to advocate changes in
this current AI paradigm.
 Challenges and risks >
Copyrights
• Copyrights protecting creators are designed for
analogue world. Policymakers and regulators need
to discuss issues as royalties for artists on
streaming platforms, reselling of e-books, and
Digitalisation and artificial intelligence in the creative economy

platform liability for unauthorised uploaded

content (UNCTAD, 2022b).
• In the United Kingdom of Great Britain and
Northern Ireland, regulations define the author of
a computer-generated artwork as the person
undertaking the arrangements to create the work.
In Germany, regulations do not protect AI artwork.
In these regulatory frameworks, AI cannot be an
author, although this barrier is continuously
challenged (European Parliament, 2020).
• Due to copyright concerns, stock image services
have prohibited posting and selling AI images
(Dataconomy, 2022).
• Development challenges also exist on IPRs related
to AI as some developing countries face regulatory
gaps in this area. While this is an issue that exists
in several areas, the gaps may be particularly acute
regarding the regulation of new technology.
 Challenges and risks >
Consumer protection
• Consumers provide personal and payment data to
AI platforms. Many countries do not have national
laws regulating e-transactions and online
consumer protection (UNCTAD, 2021).
Digitalisation and artificial intelligence in the creative economy

• Consumers may be exposed to quality issues as

reduced cultural diversity (European Commission,
2022). Audio/video manipulation increased with AI
(e.g., deepfakes or text manipulation creating fake
news/spam) (Anantrasirichai and Bull, 2022).
Personal data use for deepfakes challenges
consumer protection, privacy and moral issues.
• Regulations should consider data became a
business resource. Appropriate, authorised,
acknowledged, and economically compensated
data use should ensure privacy and consumer
protection while allowing firms to build on data for
competitiveness.
• Many people in developing countries may have
less recourse to challenge AI issues of personal
data or content manipulation. AI may perform
worse than advertised and some developing
countries need better ways to report issues and
appeal decisions (Foreign Affairs, 2023).
 Challenges and risks >
Jobs
• ILO points to job decrease in automated activities
and job increase in automation development. AI
shifts competition to higher-skilled jobs
Digitalisation and artificial intelligence in the creative economy

(International Labour Organization, 2023). Some AI

excel in cognitive tasks like analysing texts, drafting
documents, and retrieving information (e.g.,
journalists).
• An analysis of the Survey of Adult Skills (PIAAC)
data indicates that the high risk of automation of
activities within the OECD stands at 14% for the
overall job market and a lower 10% for creative
and culture-related jobs (OECD, 2022). Ongoing
digitalisation may generate increased demand for
creative skills.
• The future of creative economy is identifying
professionals who can use AI and manage change.
AI developers may not understand creative work,
and creative professionals may not be AI experts.
Creative firms lack in-house capabilities and are
dependent on tech companies (European
Commission, 2022).
 Figure. Individuals using the
Challenges and risks > Internet by gender, 2023
Development asymmetries (1/2) (percentage)
• Developed countries, along with China and India,
dominate the “Global AI Index”, measuring talent,
infrastructure and R&D capabilities (Tortoise,
2022). The first Latin American country is Brazil
Digitalisation and artificial intelligence in the creative economy

(39th place) and the first African country is South

Africa (55th). This widens the digital divide
between developed and developing countries
(International Finance Corporation, 2019).
• In 2023, different development levels showed an
Internet usage gap. High-income countries had
93% of people using the Internet, while low-
income countries had 27% (International
Telecommunication Union, 2023) (Figure).
• Women used the Internet less than men at all
development levels. This gender gap was 1
percentage point in high-income countries and 14
percentage points in low-income countries. People
in rural areas use the Internet less than in urban
areas. This gap was 7 percentage points in high-
income countries and 30 percentage points in low-
income countries (International
Telecommunication Union, 2023).
 Figure. Population covered by
Challenges and risks > mobile network by technology and
Development asymmetries (2/2) level of income, 2023 (percentage)
• In 2023, many regions reached over 80% of 3G
mobile network coverage. LTE or WiMAX
mobile networks were implemented later but
Digitalisation and artificial intelligence in the creative economy

increased faster and reached similar coverages.

The more recent 5G mobile network is still
facing imbalances, confirming the infrastructure
dimension of the digital divide.
• Countries with higher income have higher
coverage of mobile networks. This is valid for all
technologies, but the asymmetry is higher in
the more recent and advanced 5G mobile
network. Countries with high income had 89%
of people covered by 5G mobile networks,
while countries with low income had only 1%
(Figure).
• Some developing countries also face challenges
on digital recordkeeping systems that are
necessary to use the potential of AI (Foreign
Affairs, 2023).
 Policy considerations >
UN Trade and Development survey
on the creative economy
• Digitalisation and AI may be a game changer for
several creative industries. Policymakers need to
monitor technological developments and update
Digitalisation and artificial intelligence in the creative economy

policy and regulatory frameworks to seize

opportunities and mitigate risks for the creative
economy.
• 14 of 36 countries participating in UN Trade and
Development survey reported specific initiatives
on digitalisation and AI for creative industries. 9
countries had more general policies enabling e-
commerce and building digital skills.
• The Gambia launched the Digital Economy Master
Plan 2023 to build on technology to benefit
creative industries. Addressed issues as copyright.
• Mauritius used augmented reality in the Dodo
Expedition AR app, offering a novel way to engage
with the extinct Dodo bird at the Natural History
Museum. The Mauritius Expo Virtual Platform also
represents a digital space for local artists to
showcase their work.
 Policy considerations >
Quality and consumer welfare
• Quality and consumer welfare are promoted with
people supervising AI results in creative industries,
(human curators). Technology and people
collaboration is the best scenario to develop
Digitalisation and artificial intelligence in the creative economy

content.
• Algorithm transparency is needed to ascertain
which patterns are prioritised and that commercial
interests do not unduly condition the algorithm.
This includes preserving cultural diversity and
ensuring there is no cultural appropriation.
• Regulations should cover this and, in general,
online consumer protection. Deepfake regulation
should ensure use of data in an appropriate,
authorised, acknowledged, and economically
compensated way for privacy and consumer
protection while allowing firms to build on data for
competitiveness.
• International cooperation is key for regulations.
• Managing deepfakes calls for media literacy to
assess and understand media and could include
requirements on transparency, digital
watermarking, and moral guidelines.
 Policy considerations >
Intellectual property rights (1/2)
• IPR policies need to address new issues as online
distribution and user-generated content. AI raises
questions about ownership, accountability, and
transparency. Policymakers must collaborate with
Digitalisation and artificial intelligence in the creative economy

industry, legal and tech specialists to adapt

regulations.
• Policy gaps in protecting copyrights due to the ease of
access, copying and redistributing content. Need to
balance rights of creators, consumers, and platforms.
• Angola faces challenging informality and creators’
reduced negotiation capacity. Policymakers could
consider improving IPR literacy and a whole-of-society
approach to consultations on IPR regulations. A
national IPR strategy can consolidate IPR rules and
improve clarity.
• Digital video piracy has revenue losses from US$40 to
US$97 for the global film industry. Losses range from
US$40 to US$95 billion for the global TV industry
(Global Innovation Policy Center, 2019).
• The Indian entertainment sector has annual revenue
loss of US$2.8 billion due to digital piracy (The Times
of India, 2022). Piracy of movies and TV is an even
bigger issue in Africa (Reuters, 2009).
 Policy considerations >
Intellectual property rights (2/2)
• US Digital Millennium Copyright Act (DMCA) (1998)
raises penalties for copyright infringement on the
Internet. The law criminalises producing and
Digitalisation and artificial intelligence in the creative economy

disseminating technology, devices or services to

circumvent measures that control access to
copyrighted works. The law criminalises circumventing
access control, whether or not copyright is infringed.
• Challenges on copyright are higher with AI. The
European Union and the United States say authorship
should be only of natural persons. AI role is confined
as a tool of the legal framework, not as a co-author.
• Regulations in Latin America have similar approaches,
recognising only natural persons as authors. This is
found in Argentina (Art. 16), Chile (Art. 5), Colombia
(Art. 8), Honduras (Art. 9), and Mexico (Art. 4).
Provisions do not address economic compensation for
co-creation work as AI is not a co-author.
• Protecting/compensating works by natural persons
needs determining participation levels. This is difficult
with some creations. Investors can face uncertainties if
AI is freely accessible, as property rights would be
ineffective (Santamaría Hernández, 2021).
 Policy considerations >
Governance and policy frameworks
• Clear and transparent regulation for AI protect artists’
rights, uphold moral and commercial responsibilities,
provide effective guidelines, balance innovation with
responsibility.
Digitalisation and artificial intelligence in the creative economy

• International cooperation can help designing AI

regulations, recognising that R&D and technological
applications of AI to creative industries are resource-
intensive and benefit from scale in knowledge, talent,
computing capacity and data.
• International cooperation can lead to standards with
International Organization for Standardization (ISO),
International Electrotechnical Commission (IEC), and
Institute of Electrical and Electronics Engineers (IEEE)
(Brookings, 2021). Developing countries should be
involved in shaping AI standards that should consider
skill, digital and infrastructure gaps, data protection,
and other development issues.
• International cooperation should build trust by
producing commonly agreed principles to develop and
use AI (Brookings, 2021). These principles should allow
countries to use AI for social and economic
development, including industrial policy initiatives.
The principles should pursue regulatory convergence,
reducing unjustified trade restrictions for AI.
 Policy considerations >
Jobs and skills
• Roles of creative industry actors change as
emerging technologies such as AI become
increasingly embedded in creative value chains. An
Digitalisation and artificial intelligence in the creative economy

effect is the increasing demand for new digital

skills.
• This shift causes job gains and losses. Support is
needed for those in vulnerable situations. This
includes education and training, contract
protection, and social support. The debate on
socialising the benefits of AI deserves merit,
including more discussion on universalising income
decoupled from work.
• Strategies to develop skills are relevant for
development aspirations. Skill building should
include an interdisciplinary approach and a
continuous learning dimension. For example,
creative economy professionals should learn to use
AI and to manage change to prepare these people
to seize the benefits of AI in their work, while
preparing them for AI job gains and losses.
 Policy considerations >
Development asymmetries
• Policies should consider digital divides and aim
to close the digital, knowledge, physical and
digital infrastructure gap between genders,
Digitalisation and artificial intelligence in the creative economy

urban versus rural areas, and regions with

differing developmental levels.
• This should consider asymmetries in access to
the Internet, mobile networks, and other forms
of telecommunications.
• Policymakers also need to promote affordable
digital tools and access to new payment
technologies for creative industries in all
countries, particularly developing countries.
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Thank you!