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How will generative AI impact the creator economy?

Generative AI will serve as a creative spark for sponsored content and spur new growth in the creator economy.

Generative AI will simplify and expedite the content creation process. That will lower the barrier to entry for up-and-coming creators and increase the amount of content creators can develop.

It will facilitate brand-creator sponsorships. To an extent, the tech will make it easier for brands to identify the right types of creators to work with, and it will help marketers align with them on creative.

It will drive investment growth. Venture capital investment in the creator economy plummeted in 2022. This year, generative AI will be one bright spot in an otherwise slow investment period. There are roughly 450 startups—including creator-focused ones, like Jasper and Runway—currently working on generative AI, per NFX data.

It will place a premium on creativity. The fear that generative AI will create a deluge of subpar content is warranted. But after an initial rush, the industry will right itself. Creators who rely on their own creativity and use generative AI to refine their content will stand out from the crowd and be in higher demand.

It will result in more creative tools from the social platforms. Meta’s generative AI language model LLaMA isn’t directly aimed at creators, but in a February 2023 Facebook post, CEO Mark Zuckerberg said the company is focused on “building creative and expressive tools” and “developing AI personas.” And Neal Mohan, the new head of YouTube, said in March that the company is developing generative AI tools for creators.