Sennheiser Chairman: AI Lacks True Originality to Replace Human Musicians

The chairman of German audio company Sennheiser, Daniel Sennheiser, has stated that artificial intelligence will not be able to replace human creativity in the music industry due to its inherent lack of originality. While acknowledging AI's potential as a supportive tool in music creation, Sennheiser explained that current AI largely generates content based on its training data, questioning its capacity for genuine creativity.

"AI is a calculation of probability... it comes out with basically everything that it knows, but it cannot create something new," Mr. Sennheiser, also co-chief executive of the Wedemark-based company, told The National in an interview in Dubai. He emphasized that human-created music will always be secure, with AI serving as a collaborator that can inspire but never substitute a musician.

The rapid advancement of AI has raised concerns across various industries, including music, film, and arts, which traditionally rely on human skill. In the music sector, artists and unions have voiced opposition to AI's use, citing copyright infringement and a deficit of originality in AI-generated music. Streaming services are also taking measures; Spotify recently announced the removal of approximately 50 million songs identified as low-quality AI content over the past year.

Despite these concerns, generative AI in music is a burgeoning market, with projected revenues expected to reach nearly $2.8 billion by 2030, a significant increase from an estimated $960.4 million this year, according to Grand View Research. Mr. Sennheiser, the third-generation leader of the company founded in 1945, likened the initial fear of AI to that of previous technological shifts, noting that AI currently excels at producing what he terms "background music." He added, "AI tools are allowing much more people to be creative with music... it's more of a support than anything else."

Regarding supply chains, Mr. Sennheiser indicated that the company has not been directly impacted by current disruptions stemming from geopolitical conflicts and trade disputes. This resilience is attributed to Sennheiser's in-house operations, including its own assembly line for surface-mount devices, and strong third-party relationships. The company is also not affected by shortages in chips or critical minerals like neodymium, as the audio industry's demand for these components is less extensive compared to manufacturers of smartphones and computers. Being based in Germany, a major European manufacturing hub, further aids the company.

"We were always able to deliver more or less every product... we find our way around those shortages," Mr. Sennheiser stated. He did confirm that Sennheiser adjusts prices based on the costs of raw materials, transportation, and manufacturing, including energy expenses. "We look at what is available in the market and what is sustainable, so we have a regular schedule of increasing prices based on the realities that are there," he explained.

Sennheiser plans to continue its investment in the Middle East, with its Dubai office serving as a hub for the wider region, including CIS countries. While the company does not disclose market share figures, Mr. Sennheiser noted that Sennheiser holds a "fair share" in markets like the UAE, despite being underrepresented in some others. "I see the market growing and that's why I want to invest in this region," he concluded.