AI is an opportunity for creative industries, says Bertelsmann boss

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Artificial intelligence is more of an opportunity than a threat to creative industries, the head of Europe’s largest media group said in defiance of warnings about the dangers of generative AI.

Thomas Rabe, chief executive of the German firm that owns book publisher Penguin Random House and music label BMG, said that although there were “major questions” about copyright protection, the technology was “on balance . . . probably more than an opportunity”.

“I really think generative AI is a game changer” for society, the Bertelman the chief executive told the Financial Times. “It can be very positive, provided we stay aware of it and understand its potential and threats.”

Several major music companies have been alarmed by the rise of AI-generated songs, which coupled with the growing popularity of ambient music has contributed to their losing market share to streaming platforms.

Spotify earlier this month removed tens of thousands of songs produced by TO THE start-up Boomy after coming under pressure to act from industry incumbents, including Universal Music.

Rabe, who has headed private firm Bertelsmann since 2012, said the creative industries were entering “uncharted territory” when it comes to protecting the work of their authors and artists.

Using the works of known authors or artists as input to the software so it can produce new content “may constitute copyright infringement” and has been investigated by the company’s legal experts, it said.

However, Rabe also argued that a proliferation of AI-generated books and articles of varying quality would increase the value of works from respected sources.

He said there were also opportunities for authors to increase their output by feeding the software with their previous output to generate new content. “If it’s your own content, which you own the copyright to, and then you use it to train software, you can in theory generate content like never before.”

Rabe is the latest media CEO to downplay the potential difficulties posed by AI. Mark Read, head of advertising firm WPP, said last month that using AI systems to help create campaigns would be a “great opportunity to streamline” creative work.

Rabe said he was trying to promote understanding of artificial intelligence at Bertelsmann and its subsidiaries.

The technology has already been implemented in several divisions. TV production company Fremantle uses artificial intelligence to dub shows like The X factor and the He’s good franchise in Arabic.

BMG and group-owned broadcaster RTL Netherlands are working together to develop ways to use artificial intelligence to automatically choose appropriate background music for TV show trailers.

And a media group Bertelsmann is using artificial intelligence to analyze the emotions of protagonists in TV programs to help place ads that fit the content.

Rabe revealed that he was an enthusiastic personal user of the “impressive” ChatGPT, saying he was already improving his job as a CEO.

He recently used the chatbot to help him prepare for a staff event at the Penguin Random House Munich office. “I asked ChatGPT about the impact of ChatGPT or Generative AI on posting. He has prepared a phenomenal text. Frankly, it was pretty detailed and to the point,” she said.