The rise of AI generated art has the potential to significantly change the dynamic of modern art as a means to circumvent capital controls.

Traditionally, modern art has been used as a way for individuals and institutions to invest in and profit from the art market, often as a way to avoid strict regulations on the movement of capital. However, AI generated art challenges this status quo by offering a new and potentially more efficient way to invest in the art market.

AI generated art, also known as artificial intelligence art or machine learning art, is created using algorithms and computer programs that can generate unique works of art. These works are often indistinguishable from those created by human artists, and can be sold for significant sums of money.

One of the key advantages of AI generated art is that it can be easily and quickly produced in large quantities, allowing for a greater supply of artworks to enter the market. This could potentially lead to a decrease in the value of traditional modern art, as the increased supply could cause prices to drop.

Furthermore, AI generated art is not subject to the same capital controls as traditional art. Because it is created by algorithms and not humans, there are no restrictions on the movement of AI generated art across borders. This allows for greater flexibility in the art market, and could potentially make it a more attractive investment option for individuals and institutions looking to avoid capital controls.

In conclusion, the rise of AI generated art has the potential to significantly change the dynamic of modern art as a means to circumvent capital controls. With its ability to be easily and quickly produced in large quantities, and its freedom from capital controls, AI generated art could offer a new and potentially more efficient way to invest in the art market.