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StockWaves > Global Markets > AI-generated music goes viral. Ought to the music business fear?
Global Markets

AI-generated music goes viral. Ought to the music business fear?

StockWaves By StockWaves Last updated: July 17, 2025 63 Min Read
AI-generated music goes viral. Ought to the music business fear?
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AI music tech advances ‘We will not predict but’

The rising prevalence of AI music has precipitated a stir throughout the music business, in response to Keith Mullin, head of administration and music business course chief on the Liverpool Institute for Performing Arts.

Da-kuk | E+ | Getty Photos

With greater than 1 million month-to-month listeners on Spotify, psychedelic rock band The Velvet Sunset is raking in 1000’s of {dollars} and has the music business asking itself robust questions 一 they usually’re not about whether or not the ’70s are coming again. 

The “band” was not too long ago confirmed to primarily be the work of generative synthetic intelligence 一 one thing that had been closely suspected in gentle of a suspiciously clean and shiny picture of its “band members” and spinoff tune titles like “Mud on the Wind.”

The Velvet Sunset’s bio on Spotify now clarifies that it’s a “artificial music undertaking guided by human inventive course, and composed, voiced, and visualized with the help of synthetic intelligence.” 

It provides, “This is not a trick – it is a mirror. An ongoing creative provocation designed to problem the boundaries of authorship, id, and the way forward for music itself within the age of AI.”

Nevertheless, in CNBC’s conversations with varied music professionals, descriptors like “soulless,” “stifling,” and “creepy” surfaced, because the business grapples with the encroachment of AI. 

Whereas AI instruments have lengthy been built-in into music software program like Logic, newer AI-powered platforms resembling Suno and Udio have made it simpler than ever to generate whole songs based mostly on nothing quite a lot of prompts and inputs. 

Consequently, “The Velvet Sunset” is much from the one AI-generated artist rising on-line. There’s proof that different upstarts like “darkish nation” musician Aventhis — with greater than 600,000 month-to-month listeners on Spotify — are additionally a product of AI-generated voices and devices. 

In the meantime, France-headquartered music-streaming service Deezer, which deployed an AI detection instrument for music in January, revealed in April that about 18% of all tracks being uploaded to its platform are totally generated by AI.

AI music tech advances 

The standard and originality of AI music have typically been criticized, however consultants say that as generative AI turns into extra subtle, it is turning into tougher and tougher for the common listener to differentiate between human and machine.

“[The Velvet Sundown]” is significantly better music than most of what we have heard from AI up to now,” Jason Palamara, an assistant professor of music know-how on the Herron Faculty of Artwork and Design, instructed CNBC. 

“Early variations might be used to make catchy, repetitive hooks … However we have gotten to the purpose the place AI is placing out songs that truly make sense structurally, with verses, choruses and bridges,” Palamara mentioned. 

He added The Velvet Sunset is probably going simply the “tip of the iceberg” of what is coming. Suno and Udio — the present “gold normal” of genAI platforms — include few to no boundaries to entry, permitting anybody to create lots of of AI tracks in a single sitting. 

Each platforms supply free entry, in addition to premium subscriptions priced at about $30 or much less a month.  

However whereas creating an AI tune might be carried out totally free, that does not imply it may’t generate income. The Velvet Sunset has made about $34,235 over a 30-day interval throughout all audio streaming platforms, in response to estimations from ChartMasters’ streaming royalties calculator.

Due to that, it is easy to see why AI creators would possibly need to flood streaming platforms with as a lot generated music as doable, hoping to go viral. 

‘We will not predict but’

The rising prevalence of AI music has precipitated a stir throughout the music business, in response to Keith Mullin, head of administration and music business course chief on the Liverpool Institute for Performing Arts. 

“It is the new matter of the second, particularly in relation to copyright and digital service suppliers like Spotify,” mentioned Mullin, who can be the guitarist for Liverpool rock band The Farm. 

Main file labels resembling Sony Music, Common Music Group and Warner Information have launched lawsuits in opposition to Suno and Udio, accusing them of mass copyright infringement. In the meantime, 1000’s of musicians and creatives have referred to as for a prohibition on utilizing human artwork to coach synthetic intelligence with out permission.

Nonetheless, Mullin mentioned generative AI in music is right here to remain. “I do not suppose we will flip the clock again,” he mentioned, noting that music and its enterprise fashions are ever altering. 

For a band that does not even actually exist to then get all that social media traction, it is so discouraging.

Tilly Louise

U.Ok.-based different pop artist

Certainly, the music enterprise is not any stranger to large know-how shifts — occasions just like the introduction of Napster in 1999 and the proliferation of music-streaming platforms within the 2000s shook up the business, forcing main diversifications. 

Nonetheless, the notion of competing with AI bands is inflicting nervousness for budding musicians like Tilly Louise, a U.Ok.-based different pop artist who mentioned it is already onerous sufficient for small performers to realize traction and generate revenue from on-line music.

Regardless of accumulating hundreds of thousands of streams on Spotify, Louise, 25, mentioned she’s by no means made practically sufficient cash from streaming platforms to dwell on, and presently works a full-time job. 

“For a band that does not even actually exist to then get all that social media traction, it is so discouraging,” she added. 

To organize younger artists for the altering music surroundings, music professors mentioned, they’ve more and more been working AI into their lesson plans, aiming to show college students how one can use the know-how to boost their inventive course of and music manufacturing, slightly than substitute it. 

Some established producers have additionally leaned into the pattern. Final month, Grammy-winning artist and producer Timbaland launched an AI-focused leisure enterprise, referred to as Stage Zero, which is able to function an AI-generated pop star. 

“Different producers are going to begin doing this … and it’ll create a very totally different mannequin of the music business that we won’t predict but,” Palamara mentioned. He added, nonetheless, that he does suppose the pattern will make incomes cash as an artist on-line even tougher.

Major music companies negotiating licensing deals with AI startups: Here's what to know

The pattern can be anticipated to proceed to obtain backlash not just for its affect on artists, but additionally for what it may imply for music shoppers. 

“[M]usic followers must be frightened as a result of the proliferation of AI music and content material clogs our social media feeds and algorithms, making it troublesome for us to attach with each other,” Anthony Fantano, a distinguished music critic and web persona on YouTube, instructed CNBC in an announcement. 

“AI artwork presents nothing that people themselves cannot already do higher,” he mentioned, including that it is a approach for “grasping capitalists” to chop out precise artists.

Apart from calling for higher copyright protections for artists in the case of the coaching of AI, music organizations are asking that AI-generated songs be labeled as such. Spotify didn’t reply to an inquiry from CNBC concerning its generative AI detection and labeling insurance policies. 

In an announcement to CNBC, Tino Gagliardi, president of the American Federation Of Musicians of the USA and Canada, urged creators, these within the tech business, lawmakers and music followers­ to face collectively in help of human creativity and authorship.

“Consent, credit score, and compensation are stipulations in AI improvement. And transparency, together with in streaming and different marketplaces, is the inspiration for safeguarding musicians’ livelihoods. Something in need of that’s theft.”

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