Transformations in Creator Contracts Driven by Generative AI

Transformations in Creator Contracts Driven by Generative AI

The Rise of AI Clauses in Creator Contracts

In recent times, agencies have begun to incorporate more AI-related terms in creator contracts as clients express heightened concerns about brand safety. This trend has emerged from the significant legal and practical issues surrounding the use of generative artificial intelligence (AI) in content creation and influencer marketing.

Growing Concerns about Brand Safety

As businesses increasingly rely on content created by influencers and creators, there is a growing need to address brand safety risks. Brand safety refers to the measures taken to protect a company’s reputation by ensuring that its content is appropriate and aligns with its values. Many agencies report that over the past year, clients are requesting that contracts specifically state that no AI will be used in content generation.

According to various agency executives, these requests are a response to the advancements in AI technology that have raised questions about copyright infringement and potential legal troubles. For example, issues related to the ownership of content generated by AI tools have become a major focus for marketers and creators alike.

The Shift Towards AI Transparency

A significant portion of creators has started incorporating AI into their content creation processes. A survey by PMG revealed that nearly 50% of creators utilize AI for tasks ranging from idea generation to editing. Many are using tools like ChatGPT to streamline their workflows.

As a result, agencies are increasingly prioritizing transparency in their contracts. Bill Rowley, general counsel at Open Influence, noted that in the past year, requests for clauses about the non-use of AI in content creation have risen by over 30%. These clauses not only help with compliance but also instill trust between the brands and creators, ensuring that the content does not infringe on any copyrights or ownership rights.

The Complexity of AI and Copyright Issues

The legal landscape surrounding AI and copyright is evolving. Experts warn that outputs generated by AI may not be copyrightable due to the absence of human authorship. This raises concerns about potential copyright infringement if an AI model is trained on copyrighted material.

Yelena Ambartsumian, an attorney specializing in intellectual property, highlighted complications that can arise with AI-generated content. For instance, companies may not have recourse if they publish AI-generated images that infringe on copyright, potentially exposing them to liability.

Clients’ Demands for Restrictions

Some clients are implementing broader prohibitions in contracts, requesting that agencies refrain from using AI altogether. These developments reflect a growing awareness of the need for clearer guidelines as AI tools integrate more deeply into creative workflows. It is no longer sufficient for contracts to merely inquire whether AI is involved; instead, there is a pressing need to determine how AI is utilized throughout the entire content creation process.

Case-by-Case Disclosure Practices

The decision to disclose AI usage in content creation is currently left to individual brands. Influencers and companies face challenges in establishing a unified approach. Uladzimir Seuruk, CEO of the health supplement brand Cata-Kor, noted that many companies are experimenting with AI technologies to enhance their content production. However, how and when to disclose AI usage ultimately depends on each brand’s authenticity strategy and preferences.

The Future of AI Clauses in Contracts

As the landscape evolves, agencies are anticipating a shift towards standardized practices regarding AI disclosures. The integration of AI tools in creative processes, such as art generation and content writing, is expected to become more nuanced. Amy Choi from Trade School emphasized the importance of asking the right questions in contracts, advocating for a focus on transparency regarding AI’s role in the entire creative workflow.

Overall, the conversation surrounding AI clauses in creator contracts reflects an ongoing effort by brands and agencies to navigate the complexities of the digital landscape responsibly. As technology and copyright laws continue to develop, so too will the practices surrounding creator contracts and the use of AI in content creation.

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