A Darwinian Reading of the Economic Consequences of Generative AI on the Art Market
from Part I - Understanding Generative AI from Multidisciplinary Perspectives
Published online by Cambridge University Press: 08 August 2025
It is well-known that, to be properly valued, high-quality products must be distinguishable from poor-quality ones. When they are not, indistinguishability creates an asymmetry in information that, in turn, leads to a lemons problem, defined as the market erosion of high-quality products. Although the valuation of generative artificial intelligence (GenAI) systems’ outputs is still largely unknown, preliminary studies show that, all other things being equal, human-made works are evaluated at significantly higher values than machine-enabled ones. Given that these works are often indistinguishable, all the conditions for a lemons problem are present. Against that background, this Chapter proposes a Darwinian reading to highlight how GenAI could potentially lead to “unnatural selection” in the art market—specifically, a competition between human-made and machine-enabled artworks that is not based on the merits but distorted by asymmetrical information. This Chapter proposes solutions ranging from top-down rules of origin to bottom-up signalling. It is argued that both approaches can be employed in copyright law to identify where the human author has exercised the free and creative choices required to meet the criterion of originality, and thus copyrightability.
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