Major labels embrace AI music tools as artists warn technology threatens creative work survival

Reviewed byNidhi Govil

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Universal Music Group, Warner Music Group, and Sony Music have partnered with AI platforms Udio, Suno, and Klay, promising to democratize music creation. But artists across creative industries warn that generative AI threatens their ability to earn a living by displacing entry-level jobs and mimicking their styles without proper compensation, raising urgent questions about the future of creative work.

Major Labels Reverse Course on AI Music Platforms

The creative industries face a pivotal moment as major record labels dramatically shift their stance on AI. After the Recording Industry Association of America initiated legal action against AI music companies Suno and Udio for copyright infringement last year, the three major labels have now embraced these very platforms

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. Universal Music Group partnered with Udio, while Warner Music Group signed deals with both Udio and Suno. Sony Music joined Universal Music Group and Warner Music Group in partnering with Klay, making it the first AI company to secure agreements with all three majors

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Warner Music Group chief executive Robert Kyncl framed these licensing deals as entering "the next phase of innovation" and "the democratisation of music creation"

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. Udio chief executive Andrew Sanchez announced users will be able to "create [music] with an artist's voice and style" and "remix and reimagine your favourite songs with AI"

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. These platforms analyze massive amounts of recorded music to learn sounds, structures, and expressions, then allow users to generate new tracks through text prompts.

AI Threatens Artists' Ability to Earn a Living

While label executives tout innovation, sociologists who study technology's impact on society paint a darker picture. Their year-long research interviewing book authors, screenwriters, voice actors, and visual artists reveals that what AI imperils is not human creativity itself but the ability to make a living from creative endeavor

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. The threat centers on generative AI displacing entry-level jobs that allow emerging artists to develop skills and pay bills while mastering their craft.

Illustrator and concept artist Karla Ortiz experienced this firsthand when she witnessed AI mimicking styles and churning out art in her manner. "It felt like a gut punch," she said. "They were using my reputation, the work that I trained for decades, my whole life to do, and they were just using it to provide their clients with imagery that tries to mimic me"

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. Early in her career, Ortiz supported herself through grunt work like coloring comics and making art for video game companies—jobs she says young artists today "can't find" because employers use AI instead

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Source: NYT

Source: NYT

The Entry-Level Job Crisis in Creative Work

The elimination of foundational work poses a systemic problem for creative industries. OpenAI chief executive Sam Altman has suggested AI will replace the "median human" in most fields while top performers remain safe. But this reasoning overlooks how artists develop, researchers argue. Someone who is a median writer in their 20s might become exceptional by their 40s through practice and experience

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. If AI colors comics, takes notes in writers' rooms, and processes submissions at publishing houses, emerging creative workers lose opportunities to master their medium while earning income.

Sudowrite co-founder Amit Gupta claims AI "will help us get to the 80 percent mark, maybe the 90 percent mark" of human writing quality, comparing it to iPhone photography that hasn't eliminated museum-worthy photographs

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. Yet this technological disruption arrives in labor markets already characterized by imbalance between supply and demand, where more people want creative work than paying jobs exist. AI risks exacerbating existing inequalities by eliminating positions that allow early-career artists to make connections and meager livings in artistic fields

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Artist Compensation and Ethical Concerns

Klay founder and chief executive Ary Attie distinguishes his company by signing all three major labels before training its AI system on their music, calling this approach "a core part of our philosophy" while arguing rivals have been "acting in a way that doesn't respect the work of artists"

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. He claims Klay will properly compensate artists whose work is used and won't supplant human musicians. However, questions remain about how royalties and intellectual property rights will function when fans "mould their musical journeys" by manipulating existing artists' work.

Gregor Pryor, managing partner at Reed Smith, identifies background music for advertising, films, and video games as where "the real damage will be done" first, as people ask "why would I pay anyone to compose anything?"

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. This year saw AI-generated music move from novelty to mainstream force, with wholly AI act Velvet Sundown generating millions of streams and AI-created tracks topping Spotify's viral chart

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. The worry extends beyond music: artists fear AI will absorb all creative works in history and produce endless content that replaces human-made art and drives artists into penury.

The actions that artists, audiences, and regulators take in coming years will shape the future of the arts for decades, researchers conclude. What remains uncertain is whether unions, guilds, and policymakers can establish frameworks that protect artists' livelihoods while the technology advances at breakneck speed.

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