Spotify and UMG launch AI music cover and remix tool for fans

Spotify announced on Thursday that it has partnered with Universal Music Group (UMG) to enable fans to create covers and remixes of their favorite songs using generative AI technology. This feature will be a paid add-on exclusive to Spotify Premium subscribers and will include a revenue share with artists for AI-generated music based on their work.

The company did not specify the pricing or launch date for the new feature but confirmed that a licensing agreement had been reached. Spotify had previously hinted at these plans last year, mentioning collaborations with Universal Music Group, Sony Music Group, Warner Music Group, Merlin, and Believe to develop AI tools that prioritize artists.

Spotify emphasized that AI tools would be developed through “upfront agreements, not by asking for forgiveness later,” a clear critique of competitors like Suno.

Spotify outlined principles to ensure that artists and rights holders can choose whether and how to participate in AI projects, and that, if they do, they are fairly compensated.

“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next. What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part,” said Spotify co-CEO Alex Norström in a statement about the UMG collaboration.

“Through each technological transformation, we have worked together with Sir Lucian (Chairman & CEO, Universal Music Group) and his team to evolve the music ecosystem into a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters.”

Meanwhile, UMG Chairman and CEO Sir Lucian Grainge highlighted the project as a way for artists to strengthen their relationships with fans and generate additional revenue. The participating UMG artists have not yet been disclosed.

While companies like Suno and Udio have led in AI music, they have faced legal challenges when developing their tools. Suno settled a $500 million lawsuit with Warner Music Group in November, shortly after UMG settled a lawsuit with Udio.

Currently, Suno still faces copyright claims from UMG and Sony Music, among others. Udio has settled with Warner Music and UMG, but is still working on a settlement with Sony.

Seeing consumer demand, Spotify approached the major labels for its own deal. UMG may be the first of several label partnerships, though the company did not confirm this.

This announcement coincided with various Investor Day updates, including an AI-powered audiobook tool, AI features for podcasters, a desktop app for creating personal podcasts via AI, and exclusive concert tickets for top fans.