Major Music Labels Embrace AI Amid Artist Concerns and Industry Debate
AI-generated music entered the mainstream in 2025, highlighted by Velvet Sundown's millions of streams and AI artists like Xania Monet signing deals. Tracks such as Haven’s “I Run” reached the top 20 amid allegations of AI imitation. Major labels Universal Music Group and Warner Music Group shifted from a cautious approach to licensing deals with AI firms Suno and Udio, while Sony Music is in talks to follow suit. The AI companies Klay, Suno, and Udio have secured deals with all three majors. Executives framed these agreements as a way to protect artists' rights and create new creative and commercial opportunities, with discussions around the "democratization of music creation."
Platforms offered by Udio and Klay enable users to generate music using an artist’s voice or style and remix existing songs. The majors have pledged to compensate artists and maintain that AI music will not replace human musicians. However, industry bodies and some artists have criticized the lack of transparency and consultation in these arrangements. Figures including Catherine Anne Davies, Irving Azoff, the Featured Artists Coalition (FAC), and the UK Council of Music Makers expressed caution or called for stronger protections. Meanwhile, Imogen Heap advocates for a rights framework through Auracles.
Previously, the Recording Industry Association of America (RIAA) sued Suno and Udio for training AI models on label artists’ work without permission, leading to settlements. According to an internal memo from Universal, the company will not license models that imitate an artist’s voice or reuse songs without consent. While the terms of the deals remain undisclosed, potential royalties, advances, and equity stakes are implied. Artists can opt out of having their work included, but broader consultation with the artist community appears limited.
Experts warn that AI music is inherently derivative and may blur the distinction between human and machine-created art. Discussions about future artificial general intelligence (AGI) suggest increased uncertainty, reinforcing calls for evolving permissions frameworks within the music industry.
