Spotify is set to announce a major partnership with five leading music companies—Sony Music Group, Universal Music Group, Warner Music Group, Merlin and Believe—to co-develop AI music tools that prioritise artist rights and compensation.

The initiative comes as the music industry faces growing concerns over the use of copyrighted material to train AI models without consent. Spotify’s collaboration aims to place musicians at the centre of innovation by involving record labels and artists directly in the development of generative AI tools.

In documents seen by LBC, Spotify reaffirms its support for copyright: “Some voices in the tech industry believe copyright should be abolished. We don’t. Musicians’ rights matter. Copyright is essential.” The company warns that without music industry leadership, AI innovation could continue unchecked, potentially undermining creator rights and earnings.

With more than 700 million monthly users, Spotify sees its platform as a key space to foster responsible AI-driven creativity. The company aims to use AI to deepen fan engagement and generate new revenue streams, while ensuring that rights holders are fairly compensated.

A source close to the deal described it as “good news for the ambitions of creators in the UK,” adding that a market-led approach is preferable to potentially restrictive government regulation. The UK Government is currently debating a proposal that would allow artists to opt out of having their work used in AI training datasets—a measure critics say risks weakening copyright protections.

The announcement builds on Spotify’s broader licensing strategy. In February, it signed a multi-year deal with Warner Music Group covering both recorded music and publishing through Warner Chappell Music. Similar agreements with Universal Music Group and Merlin reinforce Spotify’s ties to both major and independent sectors.

These licensing deals support new fan experiences and tiered subscription models, including premium offerings for superfans. Warner Chappell’s catalogue alone includes more than one million copyrights, making these partnerships central to Spotify’s efforts to offer diverse content and protect intellectual property.

Yet tensions remain. Major labels have filed lawsuits against AI firms Suno and Udio, accusing them of training models on copyrighted music without permission. These cases underscore the urgency of finding solutions that balance innovation with legal and ethical safeguards.

Spotify’s move signals a deliberate shift towards artist-first AI development, aiming to integrate technology into music creation without compromising creator rights. As legislation on AI regulation looms, the partnership may set a precedent for how platforms and rights holders can responsibly collaborate in the era of generative AI.

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