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AI-generated music is going viral. Should the music industry be worried?

July 17, 2025
05:27 AM
7 min read
AI Enhanced
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Experts say that as generative AI becomes more sophisticated, it's becoming harder and harder for the average listener to distinguish between human and machine.

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7 min read

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personal finance

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Published

July 17, 2025

05:27 AM

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CNBC

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moneyfinancialtechnologyentertainmentmarket cyclesseasonal analysismarket

Re suggests that AI-generated bands The Velvet Sundown are going viral on ing platforms. "[The Velvet Sundown]" is much better music than most of what we've heard from AI in the past," Jason Palamara, a fessor of music nology at the Herron School of Art and Design, told CNBC, in today's market environment

The trend has sparked concerns across the music industry over copyright issues and human replacement, in light of current trends

Moreover, Additionally, The growing prevalence of AI music has caused a stir across the music industry, according to Keith Mullin, head of management and music industry course leader at the rpool Institute for Performing Arts (something worth watching)

Da-kuk | E+ | Getty ImagesWith more than 1 million monthly listeners on Spotify, psychedelic rock band The Velvet Sundown is raking in thousands of dollars and has the music industry asking itself tough questions 一 and they're not whether the '70s are coming back (an important development)

The "band" was recently confirmed to primarily be the work of generative artificial intelligence 一 something that had been heavily suspected in light of a suspiciously smooth and glossy image of its "band members" and derivative song titles "Dust on the Wind. "The Velvet Sundown's bio on Spotify now clarifies that it is a "synthetic music ject guided by human creative direction, and composed, voiced, and visualized with the support of artificial intelligence

Moreover, " It adds, "This isn't a trick - it's a mirror (noteworthy indeed) (an important development)

An artistic vocation designed to challenge the boundaries of hip, identity, and the future of music itself in the age of AI

Furthermore, "However, in CNBC's conversations with various music fessionals, descriptors "soulless," "stifling," and "creepy" surfaced, as the industry grapples with the encroachment of AI

While AI tools have long been integrated into music software Logic, newer AI-powered platforms such as Suno and Udio have made it easier than ever to generate entire songs based on nothing more than a few mpts and inputs, considering recent developments

As a result, "The Velvet Sundown" is far from the only AI-generated artist emerging online, amid market uncertainty

There's evidence that other upstarts "dark country" musician Aventhis — with more than 600,000 monthly listeners on Spotify — are also a duct of AI-generated voices and instruments

Meanwhile, France-headquartered music-ing service Deezer, which deployed an AI detection tool for music in January, revealed in April that 18% of all tracks now being uploaded to its platform are fully generated by AI, given current economic conditions

AI music advances The quality and originality of AI music have often been criticized, but experts say that as generative AI becomes more sophisticated, it's becoming harder and harder for the average listener to distinguish between human and machine. "[The Velvet Sundown]" is much better music than most of what we've heard from AI in the past," Jason Palamara, an assistant fessor of music nology at the Herron School of Art and Design, told CNBC, in this volatile climate. "Early versions could be used to make catchy, repetitive hooks

But we've gotten to the point where AI is putting out songs that actually make sense structurally, with verses, choruses and bridges," Palamara said (noteworthy indeed)

He said The Velvet Sundown is ly just the "tip of the iceberg" of what's coming

Nevertheless, Suno and Udio — the current "gold standard" of genAI platforms — come with few to no barriers to entry, allowing anyone to create hundreds of AI tracks in one sitting

Both AI platforms offer free access, as well as premium subscriptions priced at $30 or less a month, considering recent developments

But while creating an AI song can be done for free, that doesn't mean it can't generate revenue

The Velvet Sundown has made $34,235 over a 30-day period across all audio ing platforms, according to estimations from ChartMasters' ing royalties calculator

Because of that, it's easy to see why AI creators might want to flood ing platforms with as much generated music as possible, hoping to go viral

However, 'We can't predict yet'The growing prevalence of AI music has caused a stir across the music industry, according to Keith Mullin, head of management and music industry course leader at the rpool Institute for Performing Arts

Furthermore, "It's the hot topic of the moment, especially in relation to copyright and digital service viders Spotify," said Mullin, who is also the guitarist for rpool rock band The Farm (quite telling), considering recent developments

Major record labels such as Sony Music, Universal Music Group, and Warner Records have launched lawsuits against Suno and Udio, accusing them of mass copyright infringement

Meanwhile, Meanwhile, thousands of musicians and creatives have called for a hibition on using human art to train artificial intelligence without permission (which is quite significant)

However, Nevertheless, Mullin said generative AI on music is here to stay. "I don't think we can turn the clock back," he said, noting that music and its models are ever changing

For a band that doesn't even really exist to then get all that social media traction, it's so discouraging, considering recent developments

Additionally, Tilly LouiseU, given current economic conditions

In contrast, -based alternative pop artistIndeed, the music is no stranger to big nology shifts — events the introduction of Napster in 1999 and the liferation of music-ing platforms in the 2000s shook up the industry, forcing major adaptations (noteworthy indeed)

Meanwhile, Still, the notion of competing with AI bands is causing anxiety for budding musicians Tilly Louise, a U. -based alternative pop artist who said it's already hard enough for small performers to gain traction and generate income from online music

Furthermore, Despite accumulating millions of s on Spotify, Louise, 25, said she's never made nearly enough money from ing platforms to on, and currently works a full-time job. "For a band that doesn't even really exist to then get all that social media traction, it's so discouraging," she added

Nevertheless, To prepare young artists for the changing music environment, music fessors said, they've increasingly been working AI into their lesson plans, aiming to teach students how to use the nology to enhance their creative cess and music duction, rather than replace it

Moreover, Some established ducers have also leaned into the trend (which is quite significant)

Last month, Grammy-winning artist and ducer Timbaland launched an AI-focused entertainment venture, called Stage Zero, which will feature an AI-generated pop star. "Other ducers are going to start doing this

Additionally, And it will create a completely different model of the music industry that we can't predict yet," Palamara said

He added, however, that he does think the trend will make earning money as an artist online even harder, in this volatile climate

In contrast, The trend is also expected to continue to receive backlash not only for its impact on artists, but also for what it could mean for music consumers (an important development)

Furthermore, "[M]usic fans should be worried because the liferation of AI music and content clogs our social media s and algorithms, making it difficult for us to connect with one another," Anthony Fantano, a minent music critic and internet personality on YouTube, told CNBC in a statement. "AI art offers nothing that humans themselves can't already do better," he said, adding that it's a way for "greedy capitalists" to cut out actual artists, in today's financial world

However, Aside from calling for better copyright tections for artists when it comes to the training of AI, music groups are asking that AI-generated music be labeled as such

Spotify did not respond to an inquiry from CNBC regarding its generative AI detection and labeling policies

Furthermore, In a statement to CNBC, Tino Gagliardi, president of the American Federation Of Musicians of the United States and Canada, urged creators, those in the industry, lawmakers, and music fans­ to stand together in support of human creativity and hip. "Consent, credit, and compensation are prerequisites in AI development

And transparency, including in ing and other marketplaces, is the foundation for safeguarding musicians' lihoods

Anything short of that is theft.