Music royalties and AI: what’s changing and why it matters

The music world is dealing with big changes right now. Four big problems are shaking up how artists get paid and how music is made. First, AI tools can now create music, and companies are signing deals to use real songs without always asking artists first. Some big names like Udio and Klay have started paying for licenses, but others like Suno are still fighting in court. Spotify even teamed up with a major label to let fans remix songs using AI, which means artists might earn a share—but no one knows yet how much. Next, the groups that collect royalties for songwriters are under fire. These organizations take a cut of money from plays on the radio, in cafes, or online, but now publishers say they’re not being honest. Some, like Kobalt, claim they can’t even check where 30% of their payments go. Others, like Elton John and Paul McCartney, have publicly asked for clearer rules. The question is: are these groups really helping songwriters or just keeping too much for themselves?

Then there’s the rise of AI-powered cheating in streaming. One man in North Carolina used AI to make fake songs and paid bots to stream them billions of times, earning millions before getting caught. Apple Music even reported blocking two billion fake streams in one year. Services like Spotify are adding new rules, like only paying royalties after 1, 000 streams, but critics say it’s not enough when AI can flood platforms with endless songs. Finally, how much artists get paid for streams is up for debate. The Copyright Royalty Board sets these rates, but the next round of talks could get messy. Both sides—music publishers and streaming companies—want to avoid court battles, but history shows that’s tough. Without fair deals, songwriters might keep losing out, even as AI changes the game.

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