Major Labels Embrace AI Music Despite Artist Fears: A New Era or Existential Threat?
Why major music labels are now partnering with AI firms

In a dramatic shift, the global music industry is grappling with the rapid rise of artificial intelligence, moving from viewing it as a profound threat to a potential partner. This year has seen AI-generated music explode from a niche curiosity to a mainstream force, prompting major record labels to sign landmark deals with AI companies, even as many musicians voice serious concerns about their creative futures and livelihoods.

The AI Music Surge and Label U-Turn

The year 2024 has witnessed AI music achieve unprecedented commercial success. A wholly AI-generated act, Velvet Sundown, amassed millions of streams, while AI-created tracks have topped Spotify's viral charts and even a US Billboard country chart. In a significant moment, an AI-generated song by Papi Lamour was played on BBC Introducing in the West Midlands, a platform traditionally reserved for human artists. Furthermore, dance act Haven faced accusations of using AI to imitate the vocal style of British singer Jorja Smith on their track I Run, which climbed the UK Top 20.

Initially, the industry reaction was one of alarm and legal action. The Recording Industry Association of America (RIAA), representing the three major labels—Universal Music Group (UMG), Sony Music, and Warner Music Group (WMG)—sued AI firms Suno and Udio for alleged copyright infringement, claiming they trained their systems on copyrighted music without permission.

However, a remarkable about-face followed. Not only were settlements reached, but the labels entered into formal partnerships. Universal partnered with Udio, Warner with both Udio and Suno, and all three majors have deals with AI company Klay. These collaborations, according to label executives, aim to protect artists' rights while exploring "new creative and commercial possibilities."

Artist Anxiety and the Democratisation Debate

The core fear among many musicians is that AI will eventually absorb all historical creative works to produce endless derivative content, devaluing human artistry and pushing artists into financial hardship. The speed of the labels' embrace has deepened this anxiety.

AI platforms like Udio, Suno, and Klay analyse vast libraries of music to learn styles, structures, and vocal tones. Users can then generate new tracks via text prompts, potentially requesting a song in the style of a specific existing artist. Udio's CEO, Andrew Sanchez, stated their partnership with Universal will let users "create with an artist's voice and style" and "remix and reimagine your favourite songs with AI."

This is framed by the industry as the ultimate democratisation of music creation. Warner's CEO, Robert Kyncl, called it "the democratisation of music creation," enabling fans to co-create. However, critics argue this mass manipulation of artists' work at scale fundamentally devalues the original creative act.

Artist opinions are sharply divided. Dave Stewart of Eurythmics pragmatically advised artists to license their voices, arguing "they're just going to take it anyway." In contrast, Catherine Anne Davies (The Anchoress), a board member of the Featured Artists Coalition, holds a "dystopian" or "realist" view, sceptical of generative AI's creative use. Legendary manager Irving Azoff responded to the Universal/Udio deal with cynicism, warning that artists often end up with "scraps" in such partnerships.

Transparency, Royalties, and an Uncertain Future

A significant point of contention is the lack of transparency around these deals. The European Composer and Songwriter Alliance has highlighted a disturbing "lack of transparency," while the UK's Council of Music Makers accused labels of "spin." Although labels insist artists can opt-in to have their music used and will receive royalties, the specific commercial terms and how opt-ins function remain largely undisclosed.

Legal expert Gregor Pryor of Reed Smith suggests a paradoxical outcome: AI's derivative nature may ultimately increase the value of music verified as human-created. Meanwhile, the arrival of more advanced Artificial General Intelligence (AGI), potentially as soon as next year according to some experts, could catapult the industry into even more uncertain territory.

Broadcasters and streaming platforms now face the new challenge of distinguishing AI from human-made music, with the Papi Lamour case highlighting the risk of AI tracks slipping onto playlists. As Davies warns, the industry must consider the long-term ecosystem: "Are we fucking this completely, just to make sure that we can pay our mortgages now?" The race between innovation and protection, between democratisation and devaluation, is now the defining battle for the future of music.