Patreon CEO calls AI companies’ fair use argument ‘bogus,’ says creators should be paid

Jack Conte, the CEO of Patreon, expressed his views on the intersection of artificial intelligence and creative work during a recent talk at the SXSW conference in Austin. While he acknowledges the transformative role of AI in the tech industry, he firmly believes that creators deserve compensation for their work when it is used to train AI models. Conte described the current landscape as part of an ongoing disruption cycle that creators have faced throughout the internet era. He drew parallels to past changes, such as the shift from purchasing music on platforms like iTunes to streaming services, and the evolution of video content formats driven by platforms like TikTok. He emphasized that although AI may disrupt existing business models, he is confident that creators will adapt and continue to thrive. "Change does not mean death... you can get back up, and you can keep going," he stated, reflecting on his own experiences as a musician. The crux of Conte's argument centers on the fairness of AI companies claiming that they can utilize creators' content under the guise of 'fair use.' He labeled this argument as 'bogus' and pointed out the hypocrisy in AI firms engaging in lucrative licensing deals with major rights holders while simultaneously asserting that they can freely use creators' works. Conte posed a rhetorical question: if it is indeed legal for AI companies to use creators’ works without compensation, why are they paying large rights holders? He highlighted the importance of ensuring that millions of illustrators, musicians, and writers also receive due recognition and remuneration for their contributions, which have helped build significant value for these companies. Ending his talk on a hopeful note, Conte underscored the enduring importance of human creativity in a world increasingly influenced by technology. He asserted that while AI can generate content, it cannot replicate the unique contributions of human artists. "Great artists don’t just replicate what already exists; they push culture forward," he concluded, reinforcing the idea that societies that prioritize and support creativity will ultimately benefit as a whole.