Spotify has partnered with Universal Music Group (UMG) to introduce AI-generated covers and remixes on its platform, allowing fans to create personalised versions of songs using generative artificial intelligence while ensuring artists are compensated for the use of their work.
The feature will be introduced as a paid add-on for Spotify Premium subscribers, although the company has not yet revealed pricing details or a launch timeline. The tool is expected to allow users to generate remixes and covers of songs from participating artists through licensed AI systems.
The agreement marks one of the first large-scale collaborations between a major music streaming platform and a record label aimed at formally integrating generative AI into mainstream music experiences.
“The company’s approach was focused on building AI tools with artist consent and proper compensation mechanisms,” Spotify co-CEO Alex Norström said in a statement.
“Solving hard problems for music is what Spotify does and fan-made covers and remixes are next. What we’re building is grounded in consent, credit and compensation for the artists and songwriters that take part,” he added.
He noted that Spotify and UMG were working towards creating “a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters.”
Lucian Grainge, UMG Chairman and CEO, described the collaboration as an opportunity for artists to strengthen fan engagement while opening up additional revenue streams through AI-generated music experiences.
The partnership comes amid growing legal scrutiny of AI music-generation platforms such as Suno and Udio, both of which have faced copyright infringement lawsuits from major record labels over the alleged unauthorised use of copyrighted music for AI training.
Spotify said its AI systems would instead operate through direct licensing agreements with rights holders, rather than using copyrighted material without approval.
The company had previously indicated that it was working with major labels including UMG, Sony Music Group, and Warner Music Group to build “artist-first” AI products through formal agreements.
The announcement was made during Spotify’s Investor Day event, where the company also unveiled several AI-powered products for audiobooks, podcasts, and creator tools.
The deal could signal a broader shift in how major music companies approach generative AI, with licensed AI-generated music potentially becoming a new revenue model for the streaming industry.
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