The deals, which could be finalized within weeks, would mark a significant step in how the music industry engages with generative AI technology. Talks are said to involve emerging AI firms such as ElevenLabs, Stability AI, Suno, Udio, and Klay Vision, alongside negotiations with major tech players including Google’s Alphabet and Spotify.
Music Meets AI: A Legal and Commercial Shift
The rise of AI-generated music has unsettled the creative industries, sparking lawsuits from artists, authors, and rights holders who argue that AI models have been trained on copyrighted material without authorization or compensation. In response, record labels are moving to secure frameworks that allow for controlled licensing and fair payment structures.
The ongoing discussions are reportedly focused on two key areas:
- How songs are licensed for AI-generated tracks.
- How copyrighted music is used in training datasets for large language and music models.
According to the FT, the labels are seeking a payment model similar to music streaming services, where each use of a song would trigger a micropayment to rights holders.
Industry-Wide Implications
If finalized, the agreements could set an industry precedent for how generative AI and music rights coexist. With Universal and Warner controlling vast catalogs that include some of the world’s most popular artists, licensing deals could legitimize certain AI music applications while providing a new revenue stream for record labels and musicians.
Neither Universal Music, Warner Music, Google, nor Spotify immediately responded to Reuters’ request for comment, and the report has not yet been independently confirmed.
The Bigger Picture
The potential deals come as regulators, artists, and technology firms wrestle with the rapid rise of AI-generated creative content. While some see AI as a tool for new forms of artistry, others warn that it risks undermining human creators unless strict licensing and compensation structures are established.
For the music industry, which has already weathered the disruption of piracy and then streaming, AI represents both another existential challenge and a potential new frontier for growth.