Spotify partners with Universal Music Group to let fans create AI-generated covers and remixes with artist compensation

Spotify announced a licensing agreement with Universal Music Group (UMG) to offer generative AI tools that allow fans to create covers and remixes of songs. The tool will be a paid add-on for Spotify Premium subscribers, with revenue shared with participating artists.

The deal is built on principles of consent, credit, and compensation: artists and rightsholders can choose whether and how to participate, and if they do, they receive fair compensation. Spotify had previously teased it was working with UMG, Sony Music Group, Warner Music Group, Merlin, and Believe on similar artist-first AI products.

This follows legal settlements by competitors: Suno settled a $500 million lawsuit with Warner Music Group in November, and Udio settled with both Warner and UMG, though Suno and Udio still face copyright claims from other major labels.