The economic model of the artificial intelligence sector is consuming itself

Serdar HocamAuthor & Editor

Internal correspondence and copyright lawsuits reveal that the growth of artificial intelligence systems by consuming human-produced content is weakening the economic foundations.

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Yapay zekanın ekonomi modeli kendi kendini tüketiyor

The growth of the artificial intelligence sector using human-produced content creates a vicious cycle that weakens the economic models financing this content. Microsoft internal documents and copyright lawsuits show that this situation threatens the future of the sector.

The vicious cycle mentioned in Microsoft documents

This vicious cycle, defined as a "doom loop" in Microsoft's internal documents, emerges as artificial intelligence benefits from human-produced content while weakening the economic models that finance the production of that content.

Documents revealed within the scope of the copyright lawsuit filed by The New York Times against Microsoft and OpenAI showed that company executives are aware of these risks and that the strategies could harm the entire internet.

Loss of revenue in news media

One of the most prominent examples of this cycle is seen in the news media. Artificial intelligence tools have started summarizing news and offering direct answers to users.

This situation significantly reduces the traffic to news organizations' websites and, consequently, their advertising revenues.

Pressure in the music and Hollywood sectors

While the proliferation of songs produced by artificial intelligence in the music sector triggers copyright debates, actors in Hollywood face the risk of revenue loss due to voice and image rights.

According to data from the US Bureau of Labor Statistics, more than 200,000 job losses have occurred in creative sectors since the launch of ChatGPT.

Effects on job search processes and the field of education

Job seekers using artificial intelligence while preparing resumes, and employers using it in hiring processes, create a reciprocal cycle.

In education, the turn of both students and teachers toward artificial intelligence carries the risk of reducing human contribution and weakening reading and thinking skills.

Copyright lawsuits and fair use debates

While artificial intelligence companies make fair use defenses, multi-billion-dollar settlements by firms like Anthropic increase the legal tension in the sector.

Experts point out that the artificial intelligence sector, by bypassing people and institutions, is also consuming the quality data pool it will feed on in the future.