Decoder host Nilay Patel sat down with Ali Berman and Raina Penchansky, co-heads of UTA's Creators division, at the Cannes Lions advertising festival to discuss the business of the creator economy. UTA, which represents stars like Charli D'Amelio, Markiplier, Kai Cenat, Emma Chamberlain, Alex Cooper, and Alix Earle, has been in the creator space for 20 years.

Berman and Penchansky explained how the division helps creators build businesses beyond brand deals, including product launches, equity deals, and real-life experiences. They emphasized saying "no" to 90% of opportunities and focusing on the 10% that align with a creator's brand.

On the topic of brand deals, Penchansky advised trusting one's gut and avoiding hesitation. The duo also discussed the "influencer cliff" - the risk of audience rebellion when creators shift from sponsored content to selling their own products. They cited Patrick Starrr's ONE/SIZE Beauty as a success story, noting the importance of content-market fit.

Regarding AI, Berman and Penchansky expressed confidence that human connection will remain central, despite platforms like YouTube and Instagram embracing AI-generated content. They argued that community cannot be built solely from AI, and that platforms have an opportunity to protect creators. However, they acknowledged challenges in protecting likenesses and voices from unauthorized use.

Looking ahead, Berman predicted a resurgence in live content, while Penchansky pointed to Gen Alpha as the next wave of creators and consumers.