The music industry has been rocked by a scandal involving a musician in the US who allegedly used artificial intelligence (AI) tools and thousands of bots to fraudulently stream songs billions of times in order to claim millions of dollars of royalties.
Michael Smith, from North Carolina, has been charged with wire fraud, wire fraud conspiracy, and money laundering conspiracy charges in what prosecutors are calling the first criminal case of its kind. The 52-year-old is accused of using AI-generated songs and automated bot accounts to manipulate streams across multiple platforms, claiming over $10 million in royalty payments over several years.
Authorities say Smith worked with the CEO of an AI music company to obtain thousands of tracks a month in exchange for a cut of streaming revenue. The technology used to create the tracks reportedly improved over time, making it harder for platforms to detect the fraudulent activity.
If found guilty, Smith faces decades in prison. This case comes after a man in Denmark was sentenced to 18 months for a similar scheme earlier this year. Music streaming platforms like Spotify and Apple Music have strict policies against artificially inflating streams for royalties and have taken steps to prevent such practices.
The rise of AI-generated music has raised concerns among artists and record labels about fair profit sharing and the use of copyrighted material in training AI systems. Artists across creative industries have expressed outrage over the lack of recognition and reward for their work in the face of AI-generated content.
As the music industry grapples with the implications of AI technology, artists and industry professionals are calling for greater transparency and accountability to ensure fair compensation and recognition for creators.
