Are AI Creators Outpacing Human Creators?

+ why long-form content is winning

Author

Grace Lemire
March 04, 2024

Hey.

Welcome to the first issue of our new newsletter, Karat Weekly. Each week, we’ll be sending out a roundup of what’s going on on social media, a few quick links to check out, and some financial reminders (if applicable).

In today’s newsletter:

  • AI creators, long-form content, and creator brands

  • TikTok steals ChatGPT, YouTubers quitting

  • Q4 tax reminders

AI Creators Taking Over?

AI creators like Aitana Lopez are making $10k per month on brand deals alone, Warner Music Group just signed a musician whose voice is created entirely with AI, and subscription platforms like Fanvue are seeing increases in revenue driven by AI creators.

Yet we don’t think any of this suggests that AI creators are taking human creators’ jobs. Despite the fear mongering from journalists, AI has been around since the 50s, and while it’s made things more efficient, it still hasn’t taken over 70 years later. 

True loyalty and trust are also more challenging to build with talking heads that lack real human emotion, and that’s the real gold for brands.

Long-Form Content Continues to Win

Brands like Peacock and Paramount have uploaded full-length movies in short clips, and TikTok users are going crazy for it. Given that TikTok has placed an emphasis on 1 minute+ content lately, we aren’t surprised. We’re eager to see how this impacts attention spans and whether short videos fall to the wayside.

Prime Signs Patrick Mahomes

Logan Paul and KSI’s brand Prime just signed Patrick Mahomes as a brand ambassador for their Hydration drink. We’re not here to discuss how absolutely thrilled Patrick looks to be there, but we do think it’s worth noting that this could be one of the first examples of a creator-led brand signing an A-list celebrity to represent their brand.

LTK Launches Match AI

LIKEtoKNOW.it (LTK) launched LTK Match AI, a software designed to match brands with creators more efficiently. The platform will recommend creators to bands “where they will have the best earnings outcomes.” Their beta test didn’t measure just how much it increases revenue for creators, but it looks promising.

📷 YouTubers are scaling back operations.

😬 TikTok steals ChatGPT tech to create their own AI.

🛍️ Creators are making $1k/day on TikTok Shop. Sign up here.

📲 Brands are experimenting with AI creator brand deals.

Quick Financial Reminder

You can still make 2023 retirement contributions in most retirement accounts until April 15th, 2024. Contributions can be tax-deductible (a.k.a. lower your tax bill), so you might want to chuck some more cash into your accounts if you have it. As always, check with your CPA directly for advice on your specific situation.

See ya next week,

Karat