The Art of Numbers: Or Is Art the New Stock Market?
- Gunna Freivalde
- Sep 10
- 8 min read
"Tell me what you collect, tell me how you collect, and I will tell you who you are."
- Jean Willy Mestach
Written by GUNNA FREIVALDE | AMG ATTORNEYS
Long gone are the days when art collecting was mainly the domain of art connoisseurs with a passion for tradition. The art world has undergone a rather dramatic transformation since then and one of the major changes is the approach to art collecting. Now, it is a new breed of collector that is emerging–one who's just as likely to be scrolling through market analytics on their smartphone as to approach art acquisition with a lifted eyebrow, focusing on numbers, charts, and investment potential predictions. Like everything in this modern world development, the new approach to the art of collecting is not elevating it to the heights of wisdom but a much more pragramtic approach to the art of investment and data-driven decision-making. Welcome to the era of the data-driven art collector!
PAINTING WITH THE BIG DATA
Imagine that in another moment, in another world, Picasso meets Python (I am speaking about the programming language here, not the snake, even though that could have been an interesting painting). That's essentially what's happening in the art market right now. Young collectors, particularly the tech-savvy millennials and Gen Zers, are approaching art acquisition with the same analytical passion they might apply to picking stocks or optimizing their fantasy football lineups.
The uniting of art and data is not just about collecting and analyzing information that comes in handy; technology is playing an increasingly important role in influencing the change of the art world. The popular subject of the moment – AI, which is being used to generate art because this is a moment to experiment with it, but to those who know, it also predicts market trends and guides in artwork authentication. The well-known blockchain technology provides a platform for tracking ownership and provenance, not having to step out of it for a single step in the process of acquiring digital art. Is it enhancing transparency and trust? It is possible, but it's not a foolproof system. Some of those tech-savvy collectors who shelled out a king's ransom for a digital monkey back in the times had the surprise of waking up one morning to find it's been kidnapped by another tech-knowledgeable capuchin, which shows that even in the digital age, where one outsmarts the other, art theft is still a monkey business.¹
But are we abandoning the tradition and depth of the art world? Is it possible that we are vacating the space in the art world when the artist can paint a story that identifies the painter and tells the story and filling it with the types of art that are adapted to the demands of the already complicated art market, and based on a scrutinized check of the artist's portfolio and market trend analysis?
While it looks like art becomes more of a business-oriented investment, overshadowing the intrinsic value of art, in some way alienating traditional patrons and eroding its cultural and aesthetic significance, it undeniably brings greater financial stability to the art market. Nevertheless, this shift also presents an opportunity for a more diverse and inclusive art ecosystem. It's like adding an extra color to the palette; why not call it "data blue." It does not necessarily mean that the art world is losing its permanent admirers, just like Kindle did not end with traditional bookshops. Everyone has their own very personal approach to art and their choices of admiring it, buying it or collecting it in the long term, and right now, collectors exhibit a wide range of approaches, from those deeply rooted in art historical context to those driven by contemporary market dynamics and data analysis.
IS REALLY DATA THE NEW CURATOR?
According to a 2023 report by Deloitte², the global online art market is expected to reach whopping $35 billion by 2025, moved to these numbers mainly by the tech-savvy millennial and Gen Z collectors, who are using data to rely on their investment decisions – yes, you heard it right, the investment decision based on data, just like in stock market is the new fashion in the art world. The same report reveals that these High-Net-Worth Individuals are the fastest-growing demographic of art collectors globally, with a very strong preference for the use of digital platforms for art research compared to older generations (count me in that one).
So, what's driving this trend?
Well, for starters, transparency is in fashion. The art world has long been wrapped in a fog of mystery, with whispered deals and closely guarded price information. But today's collectors are loudly demanding, "Show me the Monet!" (Sorry for that but it is impossible to resist). It is not only about the transparency that may guide art enthusiasts who are confused on the indecisive complexities of the art world or to try to demystify a world that looks as enigmatic as a Jackson Pollock painting. These collectors want clear, verifiable data on everything from an artist's sales history to the provenance of a specific piece. They see art as an alternative to conventional investments, and these collectors are using data to guide their decisions. I'd like to say it differently, but this feels to me like they're trying to find the Goldilocks zone between passion and profit, and data is their trusty orbit.
This trend is being influenced by more than the aforementioned transparency of the art market but also the increasing comfort level and expectations associated with secure deals for the younger generations, which are evidently provided by data analysis and all the digital tools that modern technology has to offer up to date. The red flag of over-reliance on data while overshadowing the emotional and subjective aspects of art appreciation is a big risk, as well as privacy concerns³. Honestly, one of the recent digital heists, this time at Christie's, would have made Ocean's Eleven blush.
Right now, it feels like we are stuck between two worlds where there are those of us who love art for arts' sake, and those who see it as just another juicy investment and sometimes it feels that those algorithms and spreadsheets get the heart ripped out of art, or am I wrong?
GALLERIES AND AUCTION HOUSES: ADAPTING OR ABSTRACTING?
Traditional art institutions and businesses are facing a tough choice: adapt to this new data-driven reality or risk becoming as outdated as natural beauty. Many are rising to the challenge with enthusiasm, embracing technology and transparency in ways that would have been unthinkable just a few years ago. Their online platforms can make the whole experience of art valuation as accessible as checking the weather forecast in Australia a week ahead.
The auction house world giants are now offering high-resolution images, detailed provenance information, and expert commentary, blending it well with live-streaming auctions and incorporating virtual reality for immersive viewing experiences. With these offers in the market, buying art has become more of a convenient online shopping experience, with the possibility of being guided by a curator, minus the fees that feel like a cold shower to the face. Others are partnering with tech companies to create AI-powered systems that can spot emerging artists before they hit the Walk of Fame.
Imagine strolling through a gallery, captivated by a masterpiece. As you stand there mesmerized and curious about the back story of the piece, a tiny QR code appears in the corner of your sight. A sudden attack of curiosity makes you pull out your phone, and with a quick scan, you have been transported into a world of art data where you are now able to know everything about the artist, the current market buzz, and even steady whispers on the future market predictions with the value estimations included. Wouldn´t it feel like having a personal art advisor, a financial analyst, and a time traveler all rolled into one?
What should make us cautious in this situation is the minefield of regulations, data collection, storage and sharing limitations. Altogether with the fact that digital information and property must have established clear rules on jurisdictions, as well as rights of ownership.
THE HUMAN TOUCH IN A DIGITAL ART WORLD
Now, before you start thinking that the art world is turning into a scene from The Matrix, let's take a deep breath. While the art world is undergoing a quick digital metamorphosis, blending the tangible with the virtual, it is important to keep in mind that art is fundamentally an emotional and truly personal experience. The true value of a masterpiece lies not mainly in its market value or future estimates but in the story it tells, the emotions it awakes and the connections it fosters.
The most successful galleries and collectors are those who can blend the best of both worlds. Picture a curator who can shine the knowledge about an artist's use of light and shadow, then seamlessly transition into a discussion of their market performance over the past five years. It's this fusion of passion and precision that's really exciting, and it is what makes the art world so unique and attractive to everyone. The ecosystem where there is a sense of community among collectors and preservation of the soul of the art world is worth investing in. After all, while data can predict trends and financial gains, it cannot predict the next masterpiece before it has been created.
THE CANVAS OF THE FUTURE
As we look ahead, it's clear that the art world is evolving. Data is adding new colors to the palette and new dimensions to the canvas. But at its core, art remains a deeply human endeavor – a way to express, to feel, to connect.
For artists, this trend presents both challenges and opportunities. Yes, there's more pressure to "perform" in terms of sales and market presence. There is more to look out for in legal terms. But there's also a chance to reach new audiences and to have their work appreciated in new ways. After all, isn't art all about seeing things from different perspectives?
In the end, the rise of data in the art world isn't about replacing the heart with the head. It is the human connection to art that endures. Whether it is the thrill of discovery, the emotional resonance with a particular piece, or the simple pleasure of aesthetic beauty, art has the power to transcend time and technology. And that, dear readers, is a masterpiece in the making.
Gunna Freivalde is the legal maestro behind AMG Attorneys, where art and law collide in the most harmonious of ways. Based in Belgium, Spain, and Switzerland, Gunna is a legal ninja, wielding her expertise across borders with finesse.
And there's more! You'll also find her donning her arbitrator hat at The Court of Arbitration for Arts in The Hague, Netherlands - because who says legal proceedings can't be a work of art?
When she's not busy untangling legal knots or advocating for artistic justice (those rare moments), you can catch her donning her superhero cape as Legal Trustee at Tigers4Ever, a UK-based charity dedicated to wildlife conservation. Saving tigers by day, slaying legal dragons by night or vice versa - it's all in a day's work!
However, Gunna's most important role is being a full-time mom to two artistic teenagers and a furry squad of three cats, a dog, a horse, and a ferret (because every legal eagle needs a fuzzy sidekick).
And when the chaos of the day finally settles, you'll find Gunna unwinding with a well-deserved glass of wine, dreaming of a world where art reigns supreme, and justice is served with a side of creativity. Because hey, who says you can't change the world one masterpiece at a time?
AMG ATTORNEYS
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