The explosion of generative artificial intelligence (GenAI) brings many opportunities but also poses unprecedented risks for the media, film, television and entertainment industries.
The emergence of this automated content generation technology has left media insurance professionals facing a difficult question: will they cover claims for content created using generative AI? or not?
Ros Breese, insurance director – media, film and television at Tokio Marine HCC International, said generative AI has generated a lot of heated discussion in the media insurance industry. This technology brings a new set of risks that are completely different from traditional content creation methods.
Wariness about AI technology is not just the attitude of the media insurance industry, but also extends to the media and entertainment industry, especially in the face of high-profile legal cases.
Such as the New York Times' lawsuit against ChatGPT owner OpenAI over the use of archived documents in generative AI tools. The newspaper asserted that their copyright was violated to train AI models, and demanded damages of up to billions of dollars.
This lawsuit demonstrates the lack of legal clarity regarding the use of generative AI in content creation. The biggest problem is retrieving ownership of original content in AI-generated documents. Currently, there is no specific legal framework on this issue, causing media companies and film producers to be cautious in applying this new technology.
As generative AI becomes more widespread, the insurance industry will need to adapt its approach to the risks it poses.
To minimize risk, Breese recommends that companies develop protocols to trace the origin of content and establish a two-way accountability link between customers and generative AI tools.
“I think we will probably look at it the same as other content and work with insurance companies to minimize claims. If we know what generative AI is used for and who owns the original content, it will create assurance in the relationship between the user and the generative AI tool,” she said. . “We are on this process.”
Legal transparency and high-profile lawsuits like the New York Times lawsuit also play an important role in shaping future insurance strategies.
In addition to technological challenges, the media consumption landscape itself is also changing, heavily influenced by the COVID-19 pandemic. There is currently a clear trend away from traditionally produced content towards shorter, more digestible formats like podcasts.
“We are seeing a lot more podcast content than ever before, especially in the true crime genre,” Breese said. There is a huge interest in documentaries using archival material, rather than big blockbuster TV dramas.” The director added, “if you look at the streaming services today, there is a huge catalog of documentaries, which we wouldn't have seen five or ten years ago. We are seeing a clear shift from fictional TV series to factual content.”
This trend requires a different approach to risk management. For example, documentary filmmakers will face all sorts of rights issues with individuals appearing in their work, including in archival footage. According to Ms. Breese, this in itself is a potential minefield.
The complexity of dealing with archival material and the use of safeguards such as fair use and fair dealing further complicate the production process. These challenges demonstrate the need for specialized insurance solutions tailored to the complex landscape of documentary and factual content production.
Breese advises brokers working with clients in the media and film industries to monitor evolving risks and their clients' unique insurance and risk management needs. “The more open the relationship and conversation is between all parties in the insurance chain, the more beneficial it is,” she said.
