Looking ahead at tech in the arts in 2023

2022 witnessed major changes in the world of tech in the arts. As we closed out the year with the AMT Lab December news recap, we compiled stories based on the top themes of 2022. This past year brought a plethora of controversies, from AI to NFT’s and cryptocurrency. Policies and regulations surrounding AI, cryptocurrencies, social media, and more will continue to make headlines. In 2023, it is likely the decisions of significant entities like the SEC, the U.S. Copyright Office, and the Supreme Court will set standards for the future of these technologies.

Stay tuned later in the month for our Tech in the Arts podcast for more on these stories.

debates over ai in the art world continue

AI is a term that was inescapable in 2022. As arts organizations experiment with various AI uses, backlash from artists and patrons continues. The San Francisco Ballet came under fire recently for using an AI-generated image to promote its production of the Nutcracker. This backlash is tantamount to existing criticisms of AI-generated art, the primary being that machines are slowly replacing human artists. Lensa AI, an AI portrait creation app, has gained tremendous popularity recently. This is also not without controversy. Artists have accused the company of using their art without permission and expressed the app’s devaluing of their work.

Although many have argued for using AI in the arts as a tool or collaborator in creative processes, a legal precedent pending the outcome of a lawsuit against Microsoft, GitHub and OpenAI could add requirements for companies to credit original artists when generating works using AI. In addition to this lawsuit, the U.S. Copyright Office recently announced that it might officially rule that works must be created by humans to gain official copyright protection. This decision came out after it became known that a comic, Zarya of the Dawn, was in fact created by AI.

Crypto regulation may still be far off

As most AMT Lab readers have probably already seen, disgraced former FTX CEO Sam Bankman-Fried has been extradited to the United States from the Bahamas. He is facing charges of wire fraud, conspiracy related to securities and commodities fraud, money laundering, and violations of campaign finance laws. FTX customers, in some cases, lost their entire life savings due to the alleged commingling of funds with Alameda Research, which Bankman-Fried is accused of funneling customer deposits into. Bankman-Fried will appear in court in early January.

Despite increasing demands for greater regulation of digital assets such as cryptocurrency, U.S. Securities and Exchange Commission chair Gary Gensler has stated his unwillingness to discuss new laws. He claims that current SEC rules and Supreme Court decisions are sufficient; it is up to crypto companies to ensure they are compliant.

as elon musk resigns, what will become of twitter?

Elon Musk announced his plan to step down as Twitter’s chief executive once a successor is found. Musk remarked on the foolishness of whoever would want to take on his position, given his slashing of Twitter’s workforce by roughly 75%, booting advertisers who contribute to Twitter’s revenue, and his struggle to find new investors in the company. Twitter has even started auctioning off excess furniture and equipment in the wake of these layoffs and resignations. Along with the financial uncertainty, Musk has created a culture of utter dysfunction. Massive layoffs now result in fewer staff members to monitor content. In Japan and the Asia-Pacific region, for example, only one person now has the task of policing child abuse content on the platform. Fewer content moderators, the reinstatement of harmful misinformation accounts that were previously banned, and the suspension of several journalists’ accounts leave the platform more vulnerable than ever.

In response, the ethics of using Twitter at all has been considered by many artists and arts organizations. Many have left the platform voluntarily, and some are seeking a substitute in Mastodon, a decentralized social networking platform. A Wired article discusses its growth from a niche platform to one that is becoming more mainstream as Twitter users seek it as an alternative, particularly journalists whose Twitter accounts were suspended by Musk. As of mid-December, it has 2.5 million active monthly users. However, this rapid growth presents a challenge as Mastodon doesn’t have the staffing or resources of a Big Tech company to monitor content or comply with digital laws. While it’s too soon to say if Mastodon will grow to the ranks of Twitter or Meta at this point, it has the potential to grow into something entirely different.

NFT Downturns & looking toward new uses of NFTs

The past year was a bust for NFTs as the crypto market tanked. By November 2022, the amount of total money involved in NFT transactions had fallen by 97% from January 2022.

Going into 2023, many NFT enthusiasts believe that the NFT needs to be reimagined as having a different type of utility for consumers. Some recent examples have been trading for in-game assets in various gaming, membership to restaurants, or registration for special events.

NFTs’ promise of a fairer economy for digital creators was not realized. NFT artists have reportedly not received the royalties they are owed, and many traders found themselves victims of scams. Starting in 2023, OpenSea will enable a tool to make royalties enforceable for new collections. This will be something that creators will need to opt in to, but Shiva Rajaraman, vice president of product at OpenSea, hopes that it will give more control and choice to creators when it comes to sales.