Image of a smartphone featuring the Spotify logo, with two Airdots positioned beside it.

Spotify, the music streaming giant, has been a beacon of innovation and profitability, much to the delight of its shareholders. However, beneath the surface lies a brewing storm of scams, lawsuits, and controversial CEO remarks. 

A curious yet troubling scam involving AI-generated music infiltrating the platform has come to light. If you have not heard about it, read this complete article to understand who is involved and what it can affect. 

The AI-Generated Music Scam

A new scam has emerged, where popular songs are being covered by AI and seamlessly integrated into playlists, indistinguishable from genuine artists' works. These covers have garnered millions of plays, with mysterious bands such as the Highway Outlaws and Waterfront Wranglers amassing high listener counts despite having no social media presence and robotic biographies.

Unmasking The Deception

A group of astute Reddit users initially noticed this trend within the country music genre, which quickly revealed its presence across various decades and genres. These bands produce no original songs, only covering hits from different styles, complicating the detection of such deceptive practices.

A lawyer representing the label 11A claims that royalties are being paid and that human musicians are involved. Yet, verification attempts have been thwarted by an expired website and nearly inactive social media. This ambiguity raises critical questions about how such practices should be managed and who bears responsibility for removing these misleading tracks.

Spotify allows autotune and AI-generated content, provided it does not violate its impersonation policy. Interestingly, the content providers—not Spotify—removed the tracks, highlighting a possible loophole in accountability.

Entertainment lawyer Henderson Cole suggests that the intermediaries who manage music uploads likely removed the tracks. While using covers to increase streams is not illegal, it is undoubtedly manipulative.

Impact On Original Artists

The original artists may be the real victims here. Spotify pays royalties from a collective pool, meaning that covers can divert significant revenue away from artists like Post Malone, who earn a percentage based on total stream counts.

The government sets royalty rates, and streaming services negotiate with involved parties. This practice leaves songwriters earning minimal returns, raising concerns about the burgeoning AI presence in music.

The Role Of Government And AI

The government's ability to address these issues remains uncertain. Rick Beato, a musician and YouTuber, shared his insights during a congressional hearing, highlighting the complexities of crafting clear laws surrounding AI and music rights. Consensus, according to Beato, seems elusive.

Beato speculates that Spotify might already integrate AI with real songs in playlists to increase its share of royalties and enhance profits. He suggests that Spotify could prefer to manage AI music internally, supporting a theory dating back to 2017.

Supporting Artists In The Digital Age

To genuinely support artists, Beato stresses the importance of purchasing merchandise and attending live shows—areas where AI has yet to make a significant impact. Until AI music issues are addressed, supporting artists through traditional means remains one of the few untainted avenues available.