The music industry faces an existential dilemma as AI-generated songs infiltrate streaming platforms, prompting major labels to sign licensing deals while artists and platforms struggle to define acceptable boundaries. Anna Nicolaou and Cristina Criddle report for the Financial Times.
A recent incident in Sweden illustrates the tension. A folk-pop song by “Jacub” topped Spotify charts before being removed when officials determined it was primarily AI-created. The contradiction exposes deep industry uncertainty even as Universal Music, Warner Music, and Sony Music sign deals with companies ranging from Nvidia to small startups.
“We’ve had scares before but I don’t think they’ve ever been as existential as this is,” says Bill Zysblat, a business manager to Lady Gaga and the Rolling Stones.
More than 60,000 AI-generated tracks are added to Deezer daily, according to the streaming service. Some AI artists gain significant traction. Sienna Rose has 4.1 million monthly Spotify listeners, though Deezer’s detection tools identify most of her albums as AI-generated.
Platforms respond differently. Bandcamp banned AI music entirely, while Spotify does not label whether artists are human or AI. Deezer flags AI-generated content and excludes it from recommendations.
Major labels frame their licensing deals as protective measures, creating revenue streams rather than allowing illegal use. The deals include strict limits, attribution requirements, and penalties for past usage. Products are expected to launch within months, offering fans tools to remix music and create personalised listening experiences.
Yet enthusiasm from artists remains limited. “Established musicians aren’t worried about the threat to them,” Zysblat says. “The younger artists are very worried. They are sharing shelf space with AI artists on Spotify.”
Research shows 97 percent of listeners cannot reliably distinguish AI-created songs from human-made music.
