Artificial Intelligence Impact On Creator Economy Is Both Boon And Bane

Artificial intelligence (AI) may soon overtake the creator economy as it help to reduce costs, simplify content production and evolve traditional work culture.
As we covered in a previous article, The 1% Club, is a financial education platform founded by Instagram influencer Sharan Hegde. Sharan raised INR 10 crore funds from Zerodha co-founder Nikhil Kamath, yet the company recently laid off 15% of it’s employees.

What is the reason? And is the rise of AI a threat to our jobs?

The layoffs suggest a shift in the essentiality and efficiency of AI for survival in today’s competitive influencer market. Fact is, AI delivers more quickly than humans.
Galleri5 is an AI-powered influencer marketing platform led by CEO Rahul Regulapati. The company leverages AI technology to transform industry standards. Regulapati highlights that AI allows influencers to scale operations with minimal human resources. He adds “If you’re a top content creator, maybe you would have five photographers, a research team, and a styling team, at least 10 people. Now, with just one person and AI, we can produce similar content.”

The Sudden Shift in Sharan’s 1% Club and Other Companies

The 1% Club worked out operations with AI, and influencer marketing firms observed mixed reactions. Kofluence’s co-founder Ritesh Ujjwal noted that AI is still in its baby steps stage, though its influence is like a forest fire.
According to Neel Gogia, Founder of IPLIX Media, approximately 50,000 jobs will be at stake in the influencer ecosystem.
Currently, influencer marketing has hundreds of entry-level job openings and over 55% of such roles are in advertising services spread across content creation, media production, and marketing agencies.

AI in Content Creation and Cost Reduction

AI simplifies content production and reduces costs for creators and businesses. Let us understand simply; AI video editors will reduce hours of work to mere minutes. Hyper-realistic images and videos can be created using AI without prior design skills.
On the brighter side, such capability allows micro-influencers and small-scale businesses to produce professional content and market themselves.

You must know that AI is not limited to content generation, but can perform logistical functions. Regulapati of Galleri5 highlights, that “AI can digitally create products online, eliminating the need for physical Ad shoots and marketing videos.” If this is done it cuts down 75% of the costs of hiring photographers, locations and other logistics.
The efficiency extends to post-production as well. A few AI tools analyze audience activity data and recommend optimal posting times, while other tools adapt and reformat content for different platforms.

Tools of Artificial Intelligence Currently Serving the Creator Economy

• OpenAI, Perplexity, and Anthropic offer tools supporting various content creation stages.
• AI analyzes trending topics, performance, hashtags and competitor activities for real-time insights.
• NotebookLM and Google Illuminate help with content summarization and podcasts.
• Meta’s AI Filmmaker creates realistic videos from text instructions.
• Descript, Lumen5, and Runway ML perform video editing and production.
• KlugKlug’s AI tools monitor fake followers and suspicious engagement to maintain authenticity.

Artificial Intelligence Supporting Mushrooming Creators

• AI benefits smaller creators from tier-2 and tier-3 cities, small towns and villages.
• AI provides high-quality content creation with basic equipment, deffo helpful for those who lack Language and Writing Skills.
• Micro influencers collaborate with thousands of brands boosting monetization and reach scattered demographics.

AI is Both Boon and Bane

AI has become a critical tool for many, reshaping how creators operate and promote businesses. Sharan’s background as a finance influencer doesn’t make his company immune to making such decisions. Though he educates and empowers people about financial literacy, that cannot guarantee flawless financial decisions at all times. His personal image and the decisions he makes for the company are separate aspects that may not always align.
As AI continues to evolve, influencers and companies leverage its capabilities to stay ahead of their contenders.

Previously Read: Sharan Hegde Just Laid Off 15% Workforce; Cost-Cutting With AI