After two years of mounting tension over how artificial intelligence is reshaping music, Spotify is taking a new approach. The Swedish streaming giant has signed licensing agreements with major record labels and rights organizations to develop AI-powered music creation tools that compensate and credit artists. Rather than training systems on copyrighted music without consent, Spotify says its goal is to build AI that “puts artists and songwriters first.”
Major Labels and Rights Groups Join the Effort
The partnerships include Sony Music Entertainment, Universal Music Group, and Warner Music Group, along with global rights organization Merlin and digital distributor Believe—companies that collectively represent much of the world’s commercially released music. Spotify will license music directly from these partners to build its AI tools, marking a shift away from the “ask for forgiveness later” culture that has fueled lawsuits and backlash across creative industries. Co-President Alex Norstrom says the company is focused on making sure creators are “properly compensated for uses of their work and transparently credited for their contributions,” adding that “technology should always serve artists, not the other way around.”
Growing Backlash Against Unlicensed AI Music
AI-generated music has exploded online, from sound-alike versions of songs by artists like Eminem, Rihanna, and Phil Collins to entirely synthetic bands such as Velvet Sundown, revealed earlier this year to be fully AI-created. Many artists, including Dua Lipa, Sir Elton John, and Sir Paul McCartney, have spoken out against AI models trained on their work without permission or payment. Critics argue this flood of low-cost content threatens already thin streaming revenues. Max Bonanno of MidCitizen Entertainment says AI has “polluted the creative ecosystem” and “diluted the already limited share of revenue that artists receive from streaming royalties.”
Not everyone is convinced, but some see Spotify’s move as a step in the right direction. Ed Newton-Rex, founder of ethical AI group Fairly Trained, argues most AI systems are “exploitative,” built on unlicensed creative work. In contrast, he says Spotify’s model appears “built fairly, with artists’ permission,” though he cautions that “the devil will be in the detail.” Warner Music Group CEO Robert Kyncl echoed that stance, emphasizing that AI should work “for artists and songwriters, not against them.” Spotify also says artists will be able to choose whether to participate in these AI tools.
What This Could Mean for the Future of Music Tech
Spotify’s new licensing deals signal a push toward permission-based AI in music—one that balances innovation with creator rights. While skepticism remains about how fairly these tools will operate in practice, the agreements suggest growing industry consensus that AI must be built with consent, compensation, and transparency. If successful, this model could help shape a future where technology enhances creativity without undermining the people who make the music.
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