Major record labels Universal Music and Warner Music are reportedly nearing licensing agreements that could transform the music industry’s approach to artificial intelligence, according to a report from the Financial Times.
Discussions are taking place with technology leaders such as Google and Spotify, alongside various AI startups, including Klay Vision, ElevenLabs, and Stability AI. Notably, some of these music-generating companies, like Suno and Udio, find themselves embroiled in copyright issues with the labels.
The negotiations are centered on how the labels will license their music for AI model training and the creation of AI-generated content. A significant aspect of these talks involves compensation methods, with labels advocating for a streaming-like payment structure where each use generates micropayments. This model would necessitate the development of technology by AI companies to monitor the usage of music effectively.
