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AI tools like music generator Suno are achieving massive revenue not by replacing professionals, but by creating a new market. They empower non-musicians and non-developers to create, acting as an additive and incremental force. This suggests the initial impact of creative AI is market expansion rather than job substitution.
Suno's counterintuitive bet was that AI makes creation so personal that creators become the primary listeners of their own music. This validated a novel monetization strategy focused on the act of creation and self-consumption, not just broadcasting to an external audience.
Hera's target is not just existing After Effects users, but the larger market of people who need motion graphics but find professional tools too complex or expensive. By lowering the barrier to entry, AI tools create entirely new markets of creators, much like Airbnb did for home rentals.
AI's ability to generate ideas and initial drafts for a few dollars removes the high cost of entry for new projects. This "ideation" phase, once proven successful, often justifies hiring human experts for full execution, creating net-new work that was previously unaffordable.
Rather than destroying jobs, AI's productivity gains will lead to the creation of more abstract, seemingly "fake" roles. For example, individuals now earn a salary directly from platforms like X simply by posting AI-generated content, a trend that is expected to grow as the creator economy evolves.
Despite public industry skepticism, AI music tools are becoming indispensable creative co-pilots for professional songwriters and producers. The CEO of Suno reveals that while many pros use the platform extensively for ideation, they are reluctant to admit it publicly.
The narrative of AI destroying jobs misses a key point: AI allows companies to 'hire software for a dollar' for tasks that were never economical to assign to humans. This will unlock new services and expand the economy, creating demand in areas that previously didn't exist.
Many users of generative AI tools like Suno and Midjourney are creating content for their own enjoyment, not for professional use. This reveals a 'creation as entertainment' consumer behavior, distinct from the traditional focus on productivity or job displacement.
The primary value of AI music generators is the entertainment of creation and style transfer, not passive listening. This positions them as competitors to creative software like GarageBand or games like Fortnite, rather than to streaming platforms like Spotify.
AI music's primary value isn't just as a professional tool. Suno's CEO explains its success comes from attracting users with a novel party trick (e.g., a funny one-off song) and then retaining them through the unexpectedly joyful and engaging experience of making music.
AI tools enable "vibe coding," where you describe a desired outcome or feeling (e.g., "make the crowd go wild") rather than technical specifications. This decouples taste (what you want) from skill (how to make it), opening creative fields to non-experts.