Universal Music Group (UMG) and Warner Music Group (WMG) are reportedly on the verge of signing major artificial intelligence licensing agreements that could reshape how music is used and monetized in the AI era, according to a Financial Times report published Thursday.
Sources familiar with the discussions said that both music giants could finalize their deals within weeks, as they negotiate with a mix of AI start-ups and major tech companies.
Among the start-ups in talks are ElevenLabs, Stability AI, Suno, Udio, and Klay Vision. The labels are also in advanced discussions with industry heavyweights such as Alphabet’s Google and Spotify, according to the report.
Neither Universal, Warner, Google, nor Spotify immediately responded to Reuters’ requests for comment.
TOWARD A NEW MUSIC-AI BUSINESS MODEL
The potential deals represent a pivotal moment for the music industry, which has long battled unauthorized AI-generated content and the use of copyrighted works to train generative models. If completed, the agreements would establish a formal licensing framework allowing AI firms to access and use songs legally — for both music generation and AI model training.
Negotiations have reportedly focused on creating a payment system modeled after music streaming royalties, where every use or AI-generated playback of a song would trigger a micropayment to rights holders.
LEGAL AND ETHICAL PRESSURES ON AI FIRMS
The rise of generative AI has fueled a surge in lawsuits from artists and rights holders, accusing companies of using copyrighted material without consent or compensation. These potential licensing deals could help defuse legal tensions while providing a new revenue stream for record labels.
AI companies like ElevenLabs and Suno have been pushing the boundaries of voice synthesis and music generation, raising ethical questions about authorship and originality. By formalizing partnerships with major labels, these firms could legitimize AI-created music and ensure artists receive compensation.
A LANDMARK SHIFT FOR THE INDUSTRY
If finalized, these agreements would mark the first large-scale AI licensing model in the global music industry — a step that could influence how other creative sectors handle the intersection between AI and copyright.
Music industry observers say such deals could become a template for balancing innovation with intellectual property protection, ensuring that the creative ecosystem adapts rather than resists AI’s growing influence.