Spotify is Developing AI Tools With All Three Major Labels

Spotify has announced a new collaboration with the biggest music companies in the world for the purpose of developing “artist-first” AI music products. Major labels Warner Music Group (WMG), Universal Music Group (UMG), and Sony Music Group; prominent licensor Merlin; and French music company Believe are all involved with Spotify on the project.

The partnership:

• This is one of the first times so many top-level music industry companies have come together in the realm of AI.

• In a release, Spotify has stated its intention to eventually bring other distributors and rightsholders into the fold.

• No specific tools in development have been announced, but the products are meant to focus on four primary areas:

• Partnerships with record labels, distributors, and music publishers.

• Choice in participation.

• Fair compensation and new revenue.

• Artist-fan connection.

Background:

• This partnership comes after these companies have made significant moves in AI and beyond.

• UMG just released a statement outlining its company-wide AI strategy.

• Spotify recently announced new AI policies.

• Spotify also signed new long-term licensing agreements with Sony, WMG, UMG, and Merlin.

What they said:

• Spotify: “Some voices in the tech industry believe copyright should be abolished. We don’t. Musicians’ rights matter. Copyright is essential. If the music industry doesn’t lead in this moment, AI-powered innovation will happen elsewhere, without rights, consent, or compensation. Together with rightsholders, artists, and songwriters, we are making significant investments in AI research and product development.”

• UMG CEO Lucian Grainge: “It is essential that we work with strategic partners such as Spotify to enable Gen AI products within a thriving commercial landscape in which artists, songwriters, fans, music companies, and technology companies can all flourish.”

• Sony Music Group Chairman Rob Stringer: "This is an acknowledgement that direct licensing in advance of launching new products is the only appropriate way to build them and demonstrates how a properly functioning market benefits everyone in the ecosystem and fuels innovation.”

• Robert Kyncl, CEO of Warner Music Group: “We’ve been consistently focused on making sure AI works for artists and songwriters, not against them. That means collaborating with partners who understand the necessity for new AI licensing deals that protect and compensate rightsholders and the creative community.

• Merlin COO Charlie Lexton: “Merlin’s approach to the use of AI in music is straightforward. We actively look for partners who respect and value copyright, respect and value artists, and want to enrich, not displace, the creative community.”

• Denis Ladegaillerie, founder and CEO of Believe: “At Believe, we have always seen two sides to AI and GenAI. On the one side is ‘responsible AI,’ focused on artist and copyright protection, guided by our four principles of consent, control, compensation, and transparency. On the other side is ‘value-creative AI,’ innovations that place artists and their careers at the center, empowering creativity, accelerating music discovery, and deepening fan engagement. After supporting Spotify’s recent initiatives to strengthen AI protections, we are now thrilled to partner with Spotify to co-develop ‘value-creative AI’ tools that will fuel artist development and unlock new creative and commercial opportunities.”