Beyond the legalities of copyright, this discussion concerns fairness, culture, and how industries will handle payments in a new digital landscape. The decisions made by collection societies, publishers, and businesses today will determine the future value of creative work.
Why The Debate Matters
When a songwriter releases music or a novelist publishes a book, there are clear systems in place. Usage is tracked, payments are collected, and money is distributed through publishers or collection societies. These structures give creators confidence that their work has value and that their contributions are not lost in the system.AI challenges this balance. Training involves feeding enormous datasets into machines, and those datasets often include creative works. Unlike a song streamed on a platform or a performance tracked in a venue, AI training can happen quietly with little or no reporting. If there is no record of what was used, there is no clear way to pay the people who contributed.
AI's ability to produce creative works, such as songs, paintings, or articles, by learning from existing patterns, poses a complex question: How should these AI-generated outputs be classified—as original works, derivatives, or something else entirely? Furthermore, given their reliance on countless human inputs, how should original creators be acknowledged or remunerated?
This development threatens a crucial income stream for creators, prompts questions for societies regarding member protection, and presents both risks and opportunities for businesses.
What is Being Discussed Around the World
In Australia, the Productivity Commission has suggested that copyright exemptions for text and data mining could allow companies to train AI models without payment. Authors and creative groups have voiced concern that such exemptions remove incentives for cultural production and erode income streams.In the United States, a group of authors brought a lawsuit against an AI firm over the use of their books in training. The case ended in a settlement, showing that companies face legal and financial consequences if they use copyrighted material without consent.
At the same time, unions and technology companies are entering negotiations to explore licensing systems. Some have begun to discuss levy-style payments or compulsory remuneration rights, where creators receive compensation automatically when their work is part of training data.
These discussions remain at an early stage, but they show a growing recognition that AI cannot operate without some form of structured relationship with the creative industries.
Possible Models for AI Payments
Several approaches are being tested or proposed:- Licensing systems where companies negotiate directly with rights holders or societies to access catalogues for training.
- Remuneration rights where governments establish a legal right to payment whenever a work is used in AI training, creating a steady income stream similar to performance rights in music.
- Levies collected from AI developers and pooled into funds that societies can distribute to creators.
- Direct partnerships between technology firms and publishers or production companies, allowing access to carefully curated datasets.
Each model has strengths and limitations. Licensing provides clarity but can be complex to manage at scale. Remuneration rights are fair but require strong regulation. Levies are simple but may not reflect the actual use of specific works. Direct partnerships are practical but risk leaving independent creators outside the system.
What matters most is that creators remain visible and connected to the value chain. For societies and businesses, this is an opportunity to design systems that combine efficiency with fairness.
How Collection Societies Can Prepare
Collection societies are uniquely positioned to manage AI usage because they already oversee complex flows of rights and payments. Preparing for AI means building on existing strengths while exploring new tools:- Improve Metadata Integrity: Works with clear identifiers that are easier to track if usage reporting becomes mandatory.
- Prototype AI Reporting Systems: Testing early models for how AI usage could be logged will prepare societies for rapid adoption once regulations arrive.
- Participate in Policy Debates: Governments are seeking advice, and societies can bring decades of experience in balancing innovation with fair payment.
- Educate Members: Authors, musicians, and publishers need to understand what AI training means for their rights and income.
- Work with International Partners: Since AI training data crosses borders, cooperation between societies in different countries will be essential.
What Businesses Can Learn From Societies
Companies building or using AI have much to gain from the long experience of collective rights management. Streaming services, broadcasters, and performance venues once faced similar challenges in finding ways to pay creators fairly while maintaining sustainable business models. By collaborating with societies, they built systems that now handle billions in payments each year.For businesses, transparent licensing and fair attribution are not simply compliance tools. There are ways to earn trust from customers, strengthen partnerships, and reduce legal and reputational risk. Forward-looking companies are already exploring ways to disclose training data sources and incorporate payment mechanisms into their business plans.
A Constructive Path Forward
The future of AI and copyright should be approached as a design problem rather than a conflict. With the right reporting, licensing, and payment flows, AI can grow in a way that supports both innovation and creative culture.This is a moment for societies to show leadership by adapting their frameworks for a new environment. It is a chance for businesses to demonstrate responsibility and foresight by treating creator payment as a normal operating cost. And it is an opportunity for creators to shape the rules of engagement before they are finalised by others
Where Creative Splits Fits In
At Creative Splits, we believe payment systems should be transparent, traceable, and simple. Our platform was built to manage complex payment flows across industries, whether it involves royalties, rebates, or commissions. The same principles apply to AI.We help organisations design split agreements, automate calculations, and create clear dashboards that show who was paid, when, and why. For societies, this means more efficient distribution. For businesses, it means less risk and smoother operations. For creators, it means confidence that their contributions are recognised and compensated.
If your organisation is considering how to prepare for AI-related payments, Creative Splits can provide tools and expertise to make the process clear, fair, and future-ready.
Contact us now and let’s have a quick chat!
A Shared Opportunity
The growth of AI does not have to come at the expense of creative work. With thoughtful policies, practical payment models, and collaboration between societies and businesses, it is possible to build an environment where technology thrives and culture continues to flourish.The real opportunity lies in making sure that innovation respects the people who built the knowledge and creativity that AI depends on. If we get that right, everyone benefits.
