Warner Music Group (WMG) has reached a settlement with AI company Udio LLC over copyright infringement claims and announced plans to launch a new AI-powered song creation platform by 2026. The agreement allows Udio to use licensed and authorized music to train its AI models, creating new opportunities for artists and songwriters while safeguarding their creative works.

The AI subscription service will enable users to generate new music while ensuring that original artists retain control and receive fair compensation, addressing one of the music industry’s biggest concerns about generative AI.

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Industry Context: AI in Music

The settlement follows similar actions by Universal Music Group, which resolved a copyright dispute with Udio last month. These moves come as AI-generated music is increasingly shaping the industry, with streaming platforms like Deezer requiring AI-generated tracks to be clearly labeled for transparency and copyright compliance.

Udio’s rival, Suno, which recently raised $250 million at a $2.45 billion valuation, is also facing legal disputes with Warner, Universal, and Sony Music Group. Both Udio and Suno allow users to generate songs using AI-powered text prompts, prompting concerns that AI could “directly compete with, cheapen, and ultimately drown out” human-created music.

The AI companies argue that using copyrighted sound recordings to train their systems constitutes fair use under U.S. copyright law and that lawsuits are attempts to stifle independent innovation and competition.

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AI Music and Consumer Perception

Recent surveys highlight the growing impact of AI on listener experiences. A Deezer and Ipsos survey found that 97% of listeners cannot distinguish between AI-generated and human-composed music, raising questions about the potential for AI to disrupt traditional music creation, distribution, and monetization.

Similarly, a May survey by Luminate showed that while U.S. audiences are generally accepting of AI in areas like visual effects, there remains skepticism about AI-written scripts and synthetic actors, reflecting broader ethical and creative concerns about AI in entertainment.

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Conclusion

The Warner Music-Udio settlement represents a significant milestone in responsible AI adoption in the music industry. By creating a licensed AI song creation platform, the companies aim to balance innovation with copyright protection, opening new revenue streams for artists while fostering creativity in the rapidly evolving AI music landscape.

This agreement demonstrates how record labels and AI startups can collaborate to ensure that AI-generated content supports, rather than undermines, the music ecosystem.