AI could boost India's creative economy by 10%, but copyright rules remain unsettled
Artificial intelligence is reshaping India's media and entertainment sector, with measurable gains in efficiency and cost offset by unresolved questions about copyright and ownership. A whitepaper by Koan Advisory and Creative First found that AI adoption across creative workflows could increase revenues by around 10% while reducing costs by up to 15%.
The gains come from efficiencies in pre-production, production and post-production. AI tools are already compressing timelines for script development, virtual production, editing and localisation, lowering barriers to entry for smaller creators.
But those same tools have intensified a policy debate. The core tension: whether India should adopt a blanket licensing framework that allows AI companies to access copyrighted works at government-set rates, or preserve voluntary licensing where rights holders negotiate directly with users.
The Koan-Creative First report cautions against the blanket model. Such a system could disrupt existing market-based licensing, limit price discovery and weaken creators' control over their work, the paper argues. Instead, it recommends retaining voluntary licensing and a measured regulatory approach, particularly as legal clarity is still emerging through cases such as ANI Media versus OpenAI.
Industry pushes back on blanket licensing
Industry representatives made their position clear at roundtables held last week in Mumbai, Delhi and Hyderabad. The message was consistent: copyright protections are not barriers to innovation, but foundations for it.
Abhay Sinha, President of the Film Federation of India, said: "Digital India must not become 'free for all India'. Our creative works cannot be treated as raw material for someone else's business model."
Sanjay Tandon, Founder and Managing Director of the Indian Singers and Musicians Rights Association, was direct: "AI companies using creative works without permission is theft. It kills the artist, hollows out investment, reduces risk taking, and ultimately shrinks the diversity of music and stories that Indians get to hear and see."
Blaise Fernandes, President of the Indian Music Industry, asked a practical question: "Globally, deals are being done between copyright holders and AI companies. Why can't the same be applicable to India?"
The Film Federation, Producers Guild of India, Indian Broadcasting and Digital Foundation, Telugu Film Chamber of Commerce and other bodies all stressed the same principle: if someone uses another's work or intellectual property, they must respect the creator's rights and negotiate fair terms.
What the report recommends
Beyond licensing, the Koan-Creative First whitepaper calls for stronger enforcement mechanisms in digital environments and investment in skilling as AI tools become more embedded in filmmaking and content creation.
The report also suggests policy interventions should remain limited and adaptive, rather than prescriptive. This allows the regulatory framework to adjust as case law develops and industry practices mature.
For creatives and producers, the practical stakes are clear: how copyright is treated determines whether AI becomes a tool that enhances their work and income, or one that commodifies their output without consent or compensation.
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