The discourse around Generative AI in the music industry has rapidly shifted from pure disruption to strategic implementation over the past year. Yet, this shift has only exposed a deep, widening chasm in how the industry’s key players plan to confront—or embrace—this powerful technology. Far from a unified front, the music world is now grappling with a fundamental question: Should AI be a partner for monetisation, or an enemy to be sued?
The Clash of Major Labels vs. Independent Artists
The most significant battle line is drawn between the major record labels and independent artists and smaller labels. The major labels have increasingly pivoted toward a strategy of control and revenue generation. While they initially sued Gen AI platforms like Suno and Udio for copyright infringement, their current approach is leaning towards securing licensing deals and financial settlements, setting a precedent for responsible AI use. This strategy aims to drive new licensing revenue from the AI companies.
In contrast, many independent artists and smaller labels view Gen AI as an existential threat and remain firmly against its unlicensed use. Their fight is embodied by actions like the class-action lawsuits recently filed by independent artists against Suno and Udio. This stark difference in perspective highlights misaligned incentives: large rights holders want to monetise AI, while smaller creators are fighting to protect their livelihoods and creative ownership. Even so, the lines are blurred, with larger independent companies like Kobalt and Merlin forging partnerships with Gen AI platforms like Eleven Music.
The DSP Dilemma: Spotify vs. Deezer
The division doesn’t stop with rights holders; it extends to the streaming platforms, or Digital Service Providers (DSPs). They face a problem of “AI slop”—a flood of AI-generated content. Deezer has taken the most aggressive stance, using proprietary AI tools to detect and remove fully AI-generated tracks from its key playlists. Conversely, Spotify has opted for a voluntary disclosure system, relying on an “honour code” where rights holders indicate if AI was used. Neither approach is a perfect solution, underscoring the challenge of regulating AI-generated content on a massive scale.
Ultimately, Generative AI has become an amplifier for the music industry’s long-standing foundational problems. Contentions over rights management, ownership, and revenue distribution have plagued the business for decades, and AI is simply making them impossible to ignore. A MIDiA 2025 music creator survey revealed that while a small percentage of creators use AI co-pilots, nearly half have not used any AI music apps, illustrating the fractured nature of adoption. Time is rapidly running out to establish a united strategy; if AI doesn’t help mend these cracks, the industry risks becoming far more divided.
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