Artist codes are useful when you are importing artworks for artists that have exactly the same first name and last name (that is, two different artists both called “John Smith”).
When importing artworks via the CSV import feature, you can use the artist_code column to identify which artist the artwork is associated with. This column will take precedence over the firstname / lastname columns to ensure the artworks are matched to the correct artist.
If all your artists have a unique display name (different first name and last name), then using artist codes is optional.