AI-Generated Music Goes Viral: The Rise of Velvet Sundown and Its Impact on the Music Industry

AI-generated music is going viral. Should the music industry be worried?

With more than 1 million monthly listeners on Spotify, psychedelic rock band The Velvet Sundown is raking in thousands of dollars and has the music industry asking itself tough questions 一 and they're not about whether the '70s are coming back. The "band" was recently confirmed to primarily be the work of generative artificial intelligence 一 something that had been heavily suspected in light of a suspiciously smooth and glossy image of its "band members" and derivative song titles like "Dust on the Wind." The Velvet Sundown's bio on Spotify now clarifies that it is a "synthetic music project guided by human creative direction, and composed, voiced, and visualized with the support of artificial intelligence." It adds, "This isn't a trick - it's a mirror. An ongoing artistic provocation designed to challenge the boundaries of authorship, identity, and the future of music itself in the age of AI." However, in CNBC's conversations with various music professionals, descriptors like "soulless," "stifling," and "creepy" surfaced, as the industry grapples with the encroachment of AI. While AI tools have long been integrated into music software like Logic, newer AI-powered platforms such as Suno and Udio have made it easier than ever to generate entire songs based on nothing more than a few prompts and inputs. As a result, "The Velvet Sundown" is far from the only AI-generated artist emerging online. There's evidence that other upstarts like "dark country" musician Aventhis -- with more than 600,000 monthly listeners on Spotify -- are also a product of AI-generated voices and instruments. Meanwhile, France-headquartered music-streaming service Deezer, which deployed an AI detection tool for music in January, revealed in April that about 18% of all tracks now being uploaded to its platform are fully generated by AI.

AI bands are now topping the charts and earning real money

AI-generated music, epitomized by the viral success of bands like The Velvet Sundown, is increasingly worrying the music industry, CNBC reports. With over one million monthly listeners on Spotify, The Velvet Sundown has earned significant revenue, sparking intense debate about copyright and the role of human artists in the age of artificial intelligence. Initially thought to be a human group due to their polished image and seemingly authentic music, The Velvet Sundown has now openly declared itself a "synthetic music project" using generative AI guided by human creative input. The project's Spotify bio describes itself as an artistic endeavor designed to explore the evolving boundaries of authorship and identity within music. Jason Palamara, assistant professor of music technology at the Herron School of Art and Design, noted to CNBC, "[The Velvet Sundown] is much better music than most of what we've heard from AI in the past." Palamara pointed out that while early AI-generated songs typically featured repetitive hooks, current platforms like Suno and Udio now create structurally coherent songs complete with verses, choruses, and bridges, setting a new standard for generative music technology. The rapid proliferation of AI music is evident on platforms beyond Spotify. Deezer, a France-based music streaming service, reported that nearly 18% of the music uploaded to their platform is fully AI-generated. The ease and affordability of creating AI-generated tracks, with premium services costing approximately $30 per month or less, contribute significantly to this trend. Suno 4.5 update is music to prompt-engineers' ears Keith Mullin, head of management and music industry courses at the Liverpool Institute for Performing Arts, described AI music as "the hot topic of the moment," particularly around copyright implications. Major record labels such as Sony Music, Universal Music Group, and Warner Records have responded with lawsuits against AI platforms Suno and Udio, alleging mass copyright infringement. The emergence of AI-generated artists is causing anxiety among human musicians. British alternative pop artist Tilly Louise expressed frustration at the success of AI-generated bands, which overshadow efforts by human artists struggling financially despite millions of streams. She called the phenomenon "discouraging," highlighting the already challenging environment for independent musicians. Music educators are adapting, incorporating AI tools into their curricula to equip young artists with strategies for using AI to complement their creative processes rather than replace them. Grammy-winning producer Timbaland has embraced the trend, launching Stage Zero, an entertainment venture featuring an AI-generated pop star, suggesting significant changes to industry models ahead. Music critic Anthony Fantano voiced concern about AI music's impact on consumers, arguing that it clogs social media feeds and hinders genuine human connections. Fantano described AI-generated music as inferior to human-produced art and criticized the technology's use as a cost-cutting measure. The American Federation Of Musicians has called for clear labeling of AI-generated songs and better copyright protection to safeguard human creativity. Tino Gagliardi, the federation's president, stressed that consent, credit, and compensation must form the foundation of any ethical AI deployment in the music industry, stating clearly, "Anything short of that is theft."

Velvet Sundown: The AI-Generated Band That Surprised Spotify and the World

In a world where we are always pushing the limits of what is creatively possible, Velvet Sundown didn't just come into the market -- they came into the market swinging. But rather than view this AI-generated boy band as a sign of that (real or imagined) apocalypse, it's time to recognize it for what it really is: a sign that the creative future will be so much more collaborative, innovative, and inclusive than we ever could have thought. At first glance, Velvet Sundown looked like the next indie band to watch. Dreamy album art, poetic track titles, a soft-psych-folk vibe -- it checked all the boxes. But beneath the surface was a twist no one saw coming; there were no real musicians. No concerts. No backstage stories. Velvet Sundown was a fully AI-generated band. And still, it managed to climb to over 1 million monthly Spotify listeners. This wasn't a fluke or a gimmick. It was an inflection point. The music industry, for decades driven by human expression, has now been met by machine creativity. And rather than panic or dismiss it, people are curious about what this can unlock for future art Let's be honest: when you listen to a track from Velvet Sundown, it feels real. The emotion is there. The lyrics speak in familiar metaphors. The instrumentation is balanced, atmospheric, and playlist-ready. And that's precisely the point -- it resonates. Whether the song was written by a struggling singer in a Brooklyn studio or a generative AI trained on thousands of folk ballads doesn't matter as much as it used to. AI didn't just copy music. It understood what moved us and reflected it back with startling precision. That's not a threat to creativity. It's a mirror of it. We're not replacing human emotion; we're extending its reach. Some people were upset when they found out Velvet Sundown wasn't real. And fair enough -- transparency matters. But the backlash also shows how much we still define "authenticity" by origin rather than experience. From now on, unambiguous AI content labelling must be adopted as standard practice. But beyond that, we also need to evolve our definition of value in art. If something touches you, helps you heal, makes you feel seen -- does it really matter who or what made it? Maybe Velvet Sundown wasn't a scam. Perhaps it was a provocation -- a prod challenging us to rethink what "real" even means in a digital-first world. One of the most exciting ripple effects of Velvet Sundown's rise is what it means for access. Creating music -- good music -- has historically required expensive software, instruments, training, and industry connections. Now, with AI tools like Suno, Udio, ElevenLabs, and ChatGPT, anyone with a creative vision can produce songs, concept albums, or even full-fledged digital bands. This is democratization in action. Young creators from small towns, bedroom beatmakers, and even fans who've never touched a guitar can now explore musical storytelling without gatekeepers. We're looking at a future where cultural influence isn't determined by location or money, but just by imagination. From a business standpoint, this also opens up wild opportunities. Brands can create custom music on demand. Game developers can generate adaptive soundtracks. Filmmakers can have dynamic scores based on viewer engagement. And yes, synthetic bands like Velvet Sundown can exist alongside real artists, not to compete, but to explore niche genres, concept-based releases, or interactive fan experiences in the metaverse. We're talking about an entirely new layer of the creator economy, powered by generative tools. What's more, AI acts can be hyper-responsive. They can release music in real time based on world events, trending topics, or even audience mood. That adaptability is a game-changer to replace artistry, but to evolve audience engagement. If there's one thing Velvet Sundown teaches us, it's that creativity is no longer the sole domain of individuals -- it's evolving into a partnership between humans and machines. Just like the camera didn't kill painting, or digital art didn't erase sketching, AI music isn't the end of songwriting. It's a new medium. A new instrument. And it's already being used by real artists -- not to replace their talent, but to amplify it. Imagine a singer-songwriter who uses AI to draft five alternate choruses in seconds, or a producer who co-composes a beat with a generative rhythm engine. This is the toolkit of tomorrow's artist. Human + Machine = Next-Gen Artistry. Here's the secret: the most interesting future isn't AI versus humans. It's AI with humans.