Spotify expands AI remix tool with Merlin, bringing 30,000+ independent labels

During its Q2 earnings call on Tuesday, Spotify announced a major expansion of its AI-powered remix and covers product. The company revealed that Merlin, a key licensing partner for independent labels and distributors, has joined Universal Music Group (UMG) in supporting the initiative. This partnership brings more than 30,000 labels from Merlin's network into the project, significantly broadening the pool of artists whose work can be used in the tool.

The product allows music fans to create covers and remixes based on artists' work, but only with explicit artist consent. Spotify's approach stands in sharp contrast to AI music startups that generate fully artificial songs without artist involvement. Co-CEO Gustav Söderström told investors that Spotify's focus is on "real artists, not fake artists," emphasizing that the company's role is to enable creative participation rather than replace artists. Co-CEO Alex Norström expanded on this philosophy, saying the tool will ensure that participating artists receive both credit and compensation for their work. "We want artists to be consenting [to add] their work into this catalog, so people can play around with covers and remixes based on their art," he said, adding that Spotify is "talking about the first legal way to partake in this AI tailwind that we see coming for interactive music."

The timing of this announcement underscores the urgency. Deezer recently noted that more than 50% of daily track uploads to its platform are now AI-generated, up from 10% in January 2025, illustrating how rapidly AI music is saturating streaming services. Spotify's approach attempts to establish a legal and consensual framework as a counterpoint to this trend. Söderström noted that "this product will not happen without us, and it needs to exist so that existing artists can participate in this," suggesting that Spotify sees itself as uniquely positioned to bridge artist interests and AI music innovation.

The company will initially roll out a research preview to a subset of users, though no specific launch date was provided. Spotify also stated that the tool will not require artists to have a full music catalog to participate. The product will launch as a paid add-on, creating an additional revenue stream for participating artists and Spotify. The move appears designed to create value for all parties—artists gain compensation and control, independent labels expand their reach, and Spotify establishes itself as the ethical choice in an increasingly contentious landscape.