Major Labels Embrace AI Music Platforms After Copyright Battles, Raising Artist Concerns

Reviewed byNidhi Govil

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Warner Music Group, Universal Music Group, and Sony Music have partnered with AI music platforms Suno, Udio, and Klay after initially suing them for copyright infringement. The deals promise to democratize music creation while protecting artists' rights, but musicians worry about the impact on creative work and their livelihoods as AI-generated tracks accumulate millions of streams.

Major Labels Pivot From Legal Action to Partnership

The music industry witnessed a dramatic reversal in 2025 as major labels shifted from fighting AI music platforms to embracing them. After the Recording Industry Association of America initiated copyright infringement lawsuits against Suno and Udio last year, alleging they trained their AI systems on artists' work without permission, the three major labels executed an extraordinary about-turn

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. Universal Music Group partnered with Udio, Warner Music Group signed deals with both Udio and Suno, and all three major labels—including Sony Music—joined forces with Klay, marking the first time an AI platform secured agreements across the entire industry

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Warner Music Group chief executive Robert Kyncl framed these licensing deals as necessary to ensure "protection of the rights of our artists and songwriters" while creating "new creative and commercial possibilities"

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. Universal Music Group chief Lucien Grainge heralded "a healthy commercial AI ecosystem in which artists, songwriters, music companies and technology companies can all flourish"

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. Kyncl made an even bolder claim, declaring that the industry is "entering the next phase of innovation" through the "democratisation of music creation"

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AI-Generated Music Achieves Mainstream Success

This year marked AI's transition from experimental novelty to commercial force within the music industry. Velvet Sundown, a wholly AI act, generated millions of streams, while AI-created tracks topped Spotify's viral chart and one of the US Billboard country charts

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. Xania Monet, an AI "singer" created by 31-year-old Mississippi entrepreneur Telisha "Nikki" Jones using Suno to convert autobiographical poetry into R&B, was reportedly offered a $3 million record contract after achieving streaming success

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The technology behind these platforms is straightforward yet powerful. Suno, which raised $250 million in funding and achieved a $2.5 billion valuation, is trained on a vast body of historical recordings and can synthesize plausible renditions of any genre or style users request

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. Newer tools like Sora 2 and Suno have filled the internet with content ranging from hit country songs to visual creations

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

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Human Creativity Under Threat From Generative AI

Source: NYT

Source: NYT

While corporate messaging emphasizes democratization, musicians express deep concern about the impact on creative work and their ability to sustain creative livelihoods. Karla Ortiz, an illustrator and concept artist, described witnessing AI churning out art in her style as "a gut punch," explaining that "they were using my reputation, the work that I trained for decades, my whole life to do"

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. The fundamental question confronting artists isn't whether AI can match human creativity, but whether paid creative work can survive within the current economic system

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The threat extends beyond established artists to emerging talent. Ortiz supported herself early in her career by coloring comics and making art for video game companies—jobs that "a lot of folks today can't find" because employers use AI instead

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. This creative grunt work helps emerging artists improve their craft and pay bills while mastering their medium. If AI colors comics, takes notes in TV writers' rooms, and handles entry-level creative tasks, the pathway for young songwriters and musicians to develop their skills while earning a living may disappear entirely

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Copyright and Compensation Questions Remain Unresolved

The debate over whether AI music constitutes copyright infringement continues despite the new partnerships. Suno argued in its response to lawsuits that "the outputs generated by Suno are new sounds," positioning the technology as transformative rather than derivative

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. However, this raises fundamental questions about what it means to create music. If a human types a keyword that generates a song, how much credit should they receive? The record industry faces uncertainty about where to draw lines around creative attribution and royalties

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Klay founder and chief executive Ary Attie distinguished his company by signing all three major labels before training its AI system on their music, arguing this approach respects artists' rights

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. He claims Klay will properly compensate artists whose work is used and won't supplant human musicians

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. Yet Gregor Pryor, a managing partner at legal firm Reed Smith, predicts background music for advertising, films, and video games represents where "the real damage will be done" first, as clients ask why they should pay anyone to compose anything

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The Future of Artists and the Streaming Service Economy

Sociologists studying the relationship between technology and society warn that what AI imperils is not human creativity itself but the ability to make a living from creative endeavor

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. The actions that artists, audiences, and regulators take in the next few years will shape the future of the arts for decades

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. iHeartRadio responded to consumer sentiment by rolling out a "Guaranteed Human" tagline, with president Tom Poleman announcing the company won't employ AI personalities or play songs with purely synthetic lead vocals—citing research showing 90 percent of consumers want their media from real humans

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The livelihoods of human artists face pressure not just from AI replacing their work, but from the technology exacerbating existing inequalities in creative labor markets. There have always been more people wanting to write, paint, direct, and play music than paying jobs available

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. AI didn't create these imbalances, but it may eliminate the entry-level jobs that allow early-career artists to make connections and earn modest livings in artistic fields

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. As AI opens what one observer called "a Pandora's box," it tests what society truly values about music—whether we prize the human experience embedded in creation or simply the end product

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