The Artist and the Algorithm: AI-related Challenges and Regulations in East Asian Creative Industries and Artistic Sectors

This paper explores the intersection of artificial intelligence and copyright within East Asia’s creative industries, focusing on recent developments in the People’s Republic of China, Japan, and the Republic of Korea. As AI-generated content becomes more widespread across illustration, animation, video games, and music, legal and ethical challenges have intensified, particularly concerning the use of copyrighted works in AI training datasets. In China, illustrators have filed lawsuits against companies like Xiaohongshu for allegedly using their artwork without permission to train image-generation models such as Trik AI. Although China has implemented AI content labeling regulations and recognized copyright in some AI-assisted works when a certain level of human creativity is demonstrated, significant issues remain unresolved, especially regarding style-based imitation and the transparency of datasets. Japan’s Studio Ghibli case underscores the difficulty of protecting unique artistic styles under current copyright laws; while AI-generated outputs mimic Ghibli’s distinctive aesthetic, style replication alone does not qualify as infringement, revealing a legal gray area around artistic appropriation that becomes a relevant issue in an age where AI can be massively trained and can reproduce exact styles with no consequences. South Korea stands out for its proactive regulatory approach, exemplified by the upcoming AI Framework Act and a landmark licensing agreement between the Korea Music Copyright Association and an AI transcription service. Case studies like the video game InZOI demonstrate both the creative potential and the copyright concerns associated with AI-generated and user-generated content. However, they also underscore an alternative approach to AI training using company-owned data free of copyright issues. Through comparative analysis, this paper highlights regional and global challenges in establishing AI-related regulations that protect different creative industries. This work also highlights differences in goals and approaches across East Asian countries in implementing AI regulations. Lastly, it advocates for clearer legal frameworks, greater transparency in AI training practices, and ethical standards that balance technological innovation with the safeguarding of human creativity in the digital age.