Introduction

Artificial intelligence (AI) has been making waves in the music industry, with one of the most recent developments being the creation of AI-generated covers of popular songs.

These covers sound remarkably like the original recordings, which is why some people are calling them “deep fakes” of music. While some are skeptical about the use of AI in music creation, others see it as a way to help artists generate revenue while also offering fans a fresh take on their favourite songs.

One of the most notable examples of AI-created covers is the recent viral sensation “Heart on My Sleeve” by Drake and The Weeknd. The only caveat is that the song was generated by AI. The song was originally posted on TikTok and streamed 15 million times before being taken down due to copyright violations. However, the controversy surrounding the song raises some interesting questions about the role of AI in the music industry.

Progressing From the Lacklustre Streaming Economy

The rise of the streaming economy transformed the way we consume music, but it also led to a significant shift in the way musicians earn a living. Unfortunately, the shift was not a positive one for most musicians. Instead, it resulted in lower revenues and an increased reliance on live performances.

One of the biggest challenges facing musicians in the streaming economy is the low payouts they receive from streaming services. While the music industry as a whole has seen an increase in revenue in recent years, the vast majority of that revenue is going to the streaming platforms themselves.

According to a report by the Music Managers Forum, the average payout per stream in the UK is just £0.002, which means that an artist would need over 500,000 streams to earn the UK minimum wage of £18,000 per year. In the US, the payout per stream is slightly higher at around $0.003, but it still falls far short of what most musicians need to make a living.

As a result of these low payouts, many musicians have had to rely more heavily on live performances to earn a living. A realization not made any more easier by situations like the COVID-19 pandemic which made it difficult or impossible for many musicians to perform live, leaving them struggling to make ends meet. For example, in the US, musicians’ incomes fell by 64% during the first year of the pandemic.

The Age Before Streaming

Before the rise of the streaming economy, musicians were generally better compensated for their work. In the days of physical media, musicians could earn significant revenue from album sales, and even from singles sales. They could also earn money from licensing their music for use in movies, TV shows, and commercials. However, as more and more consumers have turned to streaming platforms, these revenue streams have dried up. Musicians will need to continue to adapt to the changing landscape of the music industry in order to survive and thrive in the streaming economy.

Artist Revenues in the AI Age

While AI-generated covers may seem like a novelty, they actually have significant implications for the music industry. One of the biggest advantages is the potential to generate revenue for the original artists. AI companies that create these covers typically work with the original artists or their record labels to ensure that royalties are paid for the use of their music. In this way, AI-generated covers can provide a new source of income for artists who may be struggling to make money from their music in the age of streaming.

One example of an AI company that is working with artists to create covers is Amper Music. The company’s AI technology allows users to create custom music tracks, including covers of popular songs, without needing any musical expertise. Amper Music has worked with major record labels and artists like T-Pain and Lil Nas X to create covers and original tracks using AI.

Another example is the AI music platform, OpenAI, which has been creating music using machine learning algorithms. In 2020, the company released an AI-generated album called “I Am AI” that featured music created entirely by machine learning models. While the album was not a commercial success, it showcased the potential of AI in music creation and generated significant buzz in the industry.

Copyright and NFTs

The rise of AI-generated covers also raises interesting questions about the future of music creation and copyright law. As AI technology continues to evolve, it is likely that we will see more AI-generated music that sounds indistinguishable from human-made recordings. This could create legal issues around copyright and ownership of music, as well as questions about what constitutes “original” music.

One potential solution to these issues is the use of non-fungible tokens (NFTs). In the music industry, NFTs could be used to verify ownership of AI-generated music and ensure that the original artists receive royalties for their work.

Some artists are already exploring the use of NFTs in the music industry. One of the first examples of AI and NFTs coming together for music production took place in 2021. The Chemical Brothers, released an NFT collection that included a new track created using AI. The NFTs also included visual art and other exclusive content. The collection sold for over $200,000 and demonstrated the potential of NFTs in the music industry.

While AI-generated music and NFTs are still in their early stages, they have the potential to revolutionize the music industry. As AI technology continues to improve, it is likely that we will see more AI-generated music that sounds indistinguishable from human-made recordings. This could create new revenue streams for artists and provide fans with a fresh take on their favourite songs, while also sharing in the revenues. However, there are also concerns about the use of AI in music and the potential for it to replace human creativity. Some musicians worry that AI-generated music will lead to a loss of jobs and opportunities for human musicians.

Artists and Fans Sharing the Stardom

In a recent tweet, Grimes made history by offering to share in the royalties earned from any AI generated songs using her voice. Grimes explicitly equated any potential AI works with collaborations with any other artist.

Grimes’ innovative scheme to split royalties with creators for AI-generated covers is a game-changer for the music industry. In the past, there have been instances where AI-generated covers have been created without any permission or compensation given to the original artists. However, this new proposal would change that, ensuring that original artists receive their fair share of royalties for covers that utilize their music.

This arrangement would benefit both the AI creators and the original artists. The AI creators would have access to a wider range of music to create covers from, while the original artists would receive compensation for covers created using their music. This is a positive step forward for the industry as it ensures that artists are being compensated for their work, regardless of how it is being utilized.

Increased Exposure for All Artists

It is worth noting that the use of AI-generated covers can also benefit lesser-known artists. For example, if an up-and-coming artist creates a cover using AI and it becomes popular, the original artist would receive royalties and gain more exposure, potentially leading to increased sales and recognition. In this way, the fame of established artists is not the only relevant factor, but AI creators themselves are further incentivised to grow their following.

Overall, this proposal has the potential to shift the way the music industry operates, with AI-generated covers becoming a more prominent feature. The use of NFTs to track royalties and ownership of these covers could also create a new revenue stream for artists and creators, further expanding the possibilities for the industry.

What’s to Come

With the inevitable and virtually unstoppable penetration of AI into the music industry, many musicians and experts are exploring ways to best utilize it as a tool to expand creative potential and maximize revenues.

AI-created music has the potential to revolutionize the music industry, offering new possibilities for artists to explore and innovate while also providing potential for fans and creators to share in the production and royalties.

The use of NFTs can also ensure that original artists receive proper compensation for their work, even if it has been recreated by AI. While there are concerns about the role of AI in music and its potential to replace human creativity, many experts in the industry see it as a tool that can be used to expand and enhance the industry. As the technology continues to evolve, it will be fascinating to see how the music industry adapts and incorporates these new possibilities.