Creative Industries Update: The art market – a report on London’s Art Business Conference
Pandora Mather-Lees
Director
IORMA Luxury and Creative Centre
Creative Industries Update: The art market – a report on London’s Art Business Conference 2023
Arts and Cultural economic activity accounts for 4.2% of the UK’s GDP. Figures for the 2022 art market reveal global sales of nearly $68 billion with the UK representing $11 billion or 18% of the global art market. With some 37 million transactions in 2022, this is an important sector for UK business and indeed the creative economy.
For this reason, we are providing a short update on the one London event each year which presents a litmus test of the market and its impact on the global consumer, The Art Business Conference. The September conference attracted important speakers bringing together art enthusiasts, professionals, and industry stakeholders. Following the traditional format it offered a day of presentations, panel discussions, and insights into the dynamics of the creative and luxury industries.
Thangam Debbonaire, the newly appointed UK shadow culture secretary, took part in the final session in a fireside chat on aspects of investment in the UK’s culture. She emphasized the commitment of the Labour party to prioritize creative arts in the school curriculum. Speaking with The Art Newspaper’s editor, Alison Cole, she highlighted the significance of introducing cultural education at a young age, pondering on the origins of the next generation of artists. Notably, Debbonaire is a former professional cellist, and is even part of the musical “parliamentary quartet”. Moreover, she is married to an opera singer. Keir Starmer was instrumental in her appointment as the shadow secretary of state for culture, media, and sport.
During the fireside chat at the end of the day, she challenged the perception that economic contributions through the arts are somehow tainted, stating, “it’s not dirty, it’s a great thing.” She advocated for equal opportunities, expressing a desire for individuals in places like Wigan to thrive in the creative industries and praised the Open University for what it had achieved over the years.. Debbonaire claimed she was not about engaging in “culture wars”, rather championing culture. She stayed after her panel at the conference to engage with the delegates and learn about their concerns.
Of importance to the art world and the creative industries, the conference covered a range of topics from due diligence standards and AI adoption to sustainability and the potential establishment of an international Title Registry for art.
The opening panel, titled “Staying Ahead – Opportunities for the UK Art Market,” set the tone for the day’s discussions. Hosted in association with the Society of London Art Dealers and moderated by Melanie Gerlis from the Financial Times, Paul Hewitt from the Society of London Art Dealers presented survey results that reflected a mix of optimism and concerns within the art market. The discussion emphasized the UK’s pivotal role in the global art ecosystem, addressing challenges posed by Brexit, Anti-Money Laundering (AML) regulations, and the fervent desire to abolish VAT. Panellists also explored the alignment with government policies and adapting to post-pandemic cultural shifts. Lady Deighton underscored the need to connect the art market with the cultural sector, emphasizing government funding to foster creativity. The conclusion resonated with a call for government support for the art industry, recognizing its substantial contribution to the UK’s economy.
Following this, the conversation shifted to the crucial topic of due diligence standards in the art world in the panel titled “Is the Art World Interested in Shared Due Diligence Standards?”
Anna Pelagotti shed light on the importance of standardized practices in art forensics, emphasizing the lack of codification in laboratories and the global arena. The panellists voiced concerns about the reluctance of experts to evaluate works by well-known artists and raised issues regarding potential biases in forensic assessments. Maria de Peverelli presented case studies illustrating the significance of standardized due diligence, emphasizing clear guidelines in provenance assessment. Martin Wilson from Phillips Auction House explained how the practice of due diligence standards and the role of art advisors is evolving to educate buyers. The panellists concluded by highlighting the complexities of this process in the art world and stressed the necessity of standardized practices to preserve the industry’s integrity.
“Sustainability and the Art World – Where Are We Now? Is Green the New Black?” was moderated by journalist Louisa Buck. It brought together Christie’s, Crozier, Accenture, and Kate MacGarry .
Chritie’s Julien Pradels noted the growth of the Gallery Climate Coalition (GCC) and highlighted the importance of transparency and communication in driving sustainability. Tu Le shared insights from Accenture’s research analysis, emphasizing the need for a data-driven approach to assess the environmental impact of art-related activities. Crozier’s Graham Bence explained sustainability initiatives in galleries and called for a deeper investigation into the impact of art-related activities. Kate MacGarry provided a personal account of transitioning her business to sustainability and envisioned a future where sustainability in the art world becomes routine, potentially even regulated by the government. The panel concluded by providing insights into the progress, challenges, and opportunities for environmental sustainability in the art world, showcasing a growing commitment to addressing environmental concerns in the art market.
“AI – the Opportunities and Challenges for Artists and Art Business,” explored the widespread use of AI across the industry. Speakers included Eva Jäger of the Serpentine Gallery, Reema Selhi (DACS), Brenden Beu of Synergy Associates, and the group ‘dmstfctn’ (an artist studio), with moderation by Racheal Muldoon of Maitland Chambers. The conversation questioned AI’s predictability through the lens of “Godmode Epochs,” a multiplayer game that challenged traditional definitions.
Concerns were raised about the potential slowdown in AI development and its novelty factor wearing off over time. Discussions touched on data control, ethical considerations, and the need for more localized control. Eva Jager’s creative AI lab explored the intersection of art and technology, seeking a balance between creativity and technological capabilities. The panel delved into the regulation of AI, with a focus on the Draft EU AI Act and upcoming discussions at the November 2023 Bletchley Park summit. Copyright issues in AI-generated works were highlighted, emphasizing the need for alignment with existing intellectual property landscapes. The debate extended to digital art conservation and the challenge of accessing advanced AI models, prompting discussions on preserving digital art while adapting to evolving technology.
The need for an “International Title Registry of Art” has long been mooted. This however was the first proper discussion to address the growing use of artworks as collateral and investment assets, proposing the concept of an international Title Registry. Experts, including finance lawyer Stephen Brodie, discussed challenges in technology, the limitations of image matching, and the potential role of insurers in supporting a database. The panel highlighted the urgency for collaboration, technology, and transparency in establishing such a process in order to promote trust within the art market.
Conclusion
This year’s conference served as a catalyst for collaborative efforts, technological advancements, and ethical considerations, shaping the future of the global art industry. The discussions provided valuable insights into due diligence, AI adoption, sustainability, and the potential for an international Title Registry. The conference underscored the industry’s commitment to standardized practices, sustainability, and transparency, reflecting a collective effort to address challenges and seize opportunities in the ever-evolving art market. Art Market Minds was created by Louise Hamlin who now runs a series of global conferences on various aspects of the market. For more information and to subscribe to their digital newsletter see HERE.
