The growing influence of artificial intelligence in arts and culture is spurring interest and an influx of investments due to the unique nature of works and the market opportunity being created, the Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications said.
Arts and culture can benefit from new-age ideas, especially now that the world has reached a point where the convergence of digital and physical has become a reality, Omar Al Olama said.
"This as a trend has created a new wave of investments, a new wave of auctions, a new wave of excitement and of people investing in AI art," Mr Al Olama said during the World Conference on Creative Economy at Expo 2020 Dubai on Wednesday.
The rise of AI tools has made it easier for creators to express themselves and make their works more accessible to people, as well as removing costly or time-consuming tasks such as traditional drawing or painting.
The relationship between artists and AI is still evolving, according to technology portal Towards Data Science, which also argues that AI could be another tool for artists.
There are no clear-cut figures regarding the market for AI art, but if auctions are to be taken into consideration, it has the potential to be lucrative. In October, Portrait of Edmond Belamy, the first AI-generated artwork sold at auction house Christie's, fetched $432,500 – almost 45 times its estimate. AI art refers to pieces created by algorithms on feedback provided.
Botto, which calls itself a decentralised artist but is technically an AI algorithm that generates artwork based on community feedback, last month sold over $1.3 million at an auction of its first six non-fungible token creations.
The NFT sales surged 328 per cent quarter-on-quarter to a record high of $10.7 billion in the third quarter of 2021, and a staggering 78,000 per cent leap from only $13.7m in the first half of 2020, data from industry tracker DappRadar showed. Fittingly, NFTs from arts and collectibles were the most popular items.
These algorithms are going to be key in promoting the market forward, Mr Al Olama said.
"The code itself is in the design, it's a code where many of these systems are trained on art pieces and then are allowed to express themselves," he added.
"We are seeing now that these systems are surely becoming tools that we can use to create new forms of expression and also tools that we take seriously in the future of governing this field."
AI is also being used to considerably condense literary works. OpenAI, a research firm that counts Tesla chief executive Elon Musk as one of its founders, recently showcased an algorithm that can summarise lengthy books into a couple of sentences by first summarising the original text into sections, then into smaller sections and finally into the main idea of the book.
We are seeing now that these systems are surely becoming tools that we can use to create new forms of expression and also tools that we take seriously in the future of governing this field
Omar Al Olama,
UAE Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications
It published two famous titles to demonstrate its capabilities: Alice in Wonderland, whose 26,449 words were reduced to 136, and Romeo and Juliet, from 25,443 to 121.
Music is also being entrenched by AI technology. Merck Mercuriadis, a former music manager, formed the Hipgnosis Songs Fund to acquire music rights and use blockchain-traded NFTs to bring a new level of transparency to music royalties.
Mr Al Olama also dismissed nagging concerns that AI will replace human jobs, saying it would complement humans and will allow them to perform duties better and in a more encouraging way.
"I don't want to tell you that you're going to be replaced by AI; if anything, I actually want to promote the fact that we're going to be enabled by AI," he said.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Alisson (Liverpool), Daniel Fuzato (Roma), Ederson (Man City); Alex Sandro (Juventus), Danilo (Juventus), Eder Militao (Real Madrid), Emerson (Real Betis), Felipe (Atletico Madrid), Marquinhos (PSG), Renan Lodi (Atletico Madrid), Thiago Silva (PSG); Arthur (Barcelona), Casemiro (Real Madrid), Douglas Luiz (Aston Villa), Fabinho (Liverpool), Lucas Paqueta (AC Milan), Philippe Coutinho (Bayern Munich); David Neres (Ajax), Gabriel Jesus (Man City), Richarlison (Everton), Roberto Firmino (Liverpool), Rodrygo (Real Madrid), Willian (Chelsea).
BIO
Favourite holiday destination: Turkey - because the government look after animals so well there.
Favourite film: I love scary movies. I have so many favourites but The Ring stands out.
Favourite book: The Lord of the Rings. I didn’t like the movies but I loved the books.
Favourite colour: Black.
Favourite music: Hard rock. I actually also perform as a rock DJ in Dubai.
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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
