ProArt warns AI could cause 12 billion forint loss in Hungarian music royalties

The ProArt Alliance for Copyright has released a report warning that unregulated artificial intelligence could cause a massive loss in music royalty revenues in Hungary. According to the ProArt Music Industry Report 2025/2026, the unauthorized use of protected musical works to train generative AI models is creating a significant 'value gap.'

Projections suggest that by 2028, music royalty revenues in Hungary could drop by approximately 19 percent. Specifically, the loss for organizations such as Artisjus, the Performing Artists Rights Protection Office (EJI), and Mahasz is estimated to be between 5.8 and 6 billion forints in 2028 alone. Over the four-year period from 2025 to 2028, the cumulative loss is expected to reach 12 billion forints.

The report highlights that while generative AI companies like Suno and Udio achieve multi-billion dollar valuations and collect significant subscription fees, the Hungarian artists and publishers whose work provided the training data receive no compensation. The most affected segments include background music, production music, and streaming.