How AI is changing the music industry – and why it matters | MN2S

Artificial intelligence is rapidly reshaping the music industry, affecting not just in how music is made, but also how it’s owned, distributed and consumed. For independent artists, labels and distribution partners, this shift isn’t a theoretical one: it’s happening now, raising urgent questions around rights, royalties, originality and control.

Chris James, MN2S’ Distribution Manager, states it clearly: “This is a very important, if not the most important, issue of the moment for the music industry.” From deepfake vocals to AI-powered music generators, almost every part of the music-making process can now be replicated or enhanced by algorithms, and the reaction from major industry stakeholders has been decisive. “Almost every part of the industry has taken a stance on this,” Chris adds, “and the DSPs, aggregators, etc, are not in favour. In fact, many say they will remove what they consider to be AI-generated music.”

This marks a pivotal moment. Where 2023 and 2024 saw an explosion of AI-generated tracks, often uploaded anonymously or via distributors with limited oversight, 2025 is shaping up to be the year that the industry draws a line in the sand. Music generated without human input – especially that which imitates the identity of real artists – is being actively challenged by distributors, platforms, and now the courts.

Perhaps the most high-profile example so far was Heart on My Sleeve, an AI-generated track that went viral in 2023, featuring what appeared to be the cloned voices of Drake and The Weeknd. Created by an anonymous producer using AI voice models, the track racked up millions of streams on TikTok and Spotify before being removed following legal complaints from Universal Music Group. The controversy catapulted the issue of voice cloning into the mainstream, with many calling for urgent action. While the track was clearly unauthorized, its commercial traction proved that AI can now convincingly replicate high-profile talent, generating global buzz in the process.

The most striking case in 2025 arrived with The Velvet Sundown, a supposed psych‑rock quartet that erupted onto Spotify with over 1 million monthly listeners just weeks after debuting two albums. What followed was a ferocious backlash when it emerged the band, alongside its music, lyrics, promotional images and backstory, was entirely AI-generated using tools like Suno, guided by human “creative direction” rather than live musicians.

The revelation ignited debates across the industry: critics questioned Spotify’s lack of disclosure requirements, Deezer confirmed flagging the releases as “100 % AI‑generated,” and the AI band was promptly banned from the Future Sound Awards for failing to meet responsible‑use criteria. The Velvet Sundown case underscores the stakes: streaming services can elevate synthetic music into mainstream playlists without transparency, challenging notions of authorship and fuelling calls for stronger rights protections for human creators.

More broadly, the UK music community has already begun to push back. In March 2025, a group of over 1,000 musicians that includes Annie Lennox, Damon Albarn, and Kate Bush came together to release an album of complete silence titled Is This What We Want? It was a direct protest against government proposals that could allow AI companies to use copyrighted music for training datasets without the creators’ consent.

Meanwhile, AI is being challenged in the courts. In June, a class-action lawsuit was filed against leading AI music startups Suno and Udio, with plaintiffs claiming their work was used without any licensing or compensation to train generative models. Universal Music Group and other majors have launched similar legal challenges, arguing that AI platforms are scraping music without permission and turning it into monetisable content that directly competes with original artists.

For MN2S Label Services, this environment presents a dual challenge: understanding the evolving rules, and helping clients navigate them safely. With digital distributors tightening policies and AI-generated tracks facing removal, artists and labels need clarity, not only about what AI can do creatively, but where it crosses legal or ethical lines.

The answer isn’t to reject AI outright. When used responsibly, AI can be a powerful creative tool, helping with production, mastering, artwork, even lyric writing. The key is transparency and consent. If AI is involved in a release, label partners and DSPs should know. If someone’s likeness or voice is being used, there should be clear permissions in place.

This is especially crucial for independent artists. Without the legal teams and infrastructure of major labels, they are often the first to be exploited and the last to be protected. That’s where trusted partners like MN2S come in: not only to distribute music, but to ensure that it’s handled ethically, legally and with the interests of artists in mind.

At MN2S, our role is to help clients make informed choices. Whether you’re releasing music, managing an artist or building a catalogue, we’re here to ensure your work is protected in the age of algorithms. AI is not going away. But how it’s used – and who stands to benefit from it – is still up for debate. The next few years will define whether AI becomes a threat to creativity or a tool that empowers creators on their own terms. 

For more information about how our label services and digital distribution team can help manage and grow your label, get in touch.

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