Inside the Emerging AI Art Market

In May, an anonymous artist who goes by SHL0MS on X posted that he had used AI to generate an image inspired by Claude Monet and asked people to weigh in on how it missed the mark. More than 600 responses called out issues, saying the colors were off, the depth was all wrong, and that AI didn’t understand how light worked.

SHL0MS then revealed that the image was of a real Monet, one of around 250 variations of water lilies the artist had painted in his lifetime. He had simply downloaded a high-resolution image from Wikimedia and cropped out the signature. He minted the exchange as an NFT (a unique digital collectible recording ownership of the work), titled it “Inferior Image,” and sold it for just over US $40,000 after 28 bids.

The stunt exposed how charged the conversation around AI art has become, and how quick people are to dismiss anything AI-generated as slop—even when it’s not. Yet even as those arguments continue, a market for AI-generated art has begun to form anyway. It’s fragmented and contested, but bigger than most people realize.

Jediwolf, an anonymous collector who says he has spent more than 20 years acquiring digital and AI art, was watching the experiment unfold in real time on X. He had never interacted with SHL0MS before, but when the NFT went up for auction he made a bid and won. “I was buying a unique moment in time,” he says, “captured by an artist and preserved as a token.”

The Monet was not AI art, but most of what Jediwolf buys is. One of Jediwolf’s digital collections, which he calls UnderTheGAN—a play on GANs, or generative adversarial networks, the AI technology that preceded today’s diffusion models—comprises roughly 100 works valued at around $72,000, focused on early AI art from 2015 to 2020, before the medium went mainstream. He describes his role as part collector, part researcher, part curator, trying to document a fast-moving field.

“A decade ago, digital art was often treated as peripheral to the ‘serious’ art world,” he says. “Today, it is increasingly difficult to separate contemporary culture from the internet.”

AI Art Moves Into Museums

The market for AI art extends beyond NFTs: AI-generated pieces are also finding their way into physical installations. Last month saw the opening of Dataland, the world’s first generative AI museum, in downtown Los Angeles. It was spearheaded by Refik Anadol, a digital artist who has built a career out of transforming data into large-scale immersive experiences. The opening exhibition has pieces that use data that Anadol collected from rainforests around the world, with real-time weather information from 16 rainforests feeding into all five galleries. In three of the rooms, the imagery also shifts in response to visitors’ own biometric data, tracked by bracelets they wear.

Like any museum it sells tickets, ranging from US $49 to $79, and has a gift shop. This shop, however, uses visitors’ biometric data collected during their visit…