Spotify Expands AI Music Initiative With Merlin Licensing Deal, Teases Consent-Based Covers Tool

Spotify used its second-quarter earnings call on Tuesday to provide further detail on an upcoming AI-powered product that will let fans create covers and remixes of artists’ music with their consent. The company announced that Merlin, a licensing partner representing independent labels and distributors, has joined Universal Music Group in supporting the initiative, bringing more than 30,000 additional labels into the effort.

Co-CEO Gustav Söderström told investors the product centers on real artists rather than fully AI-generated ones, distinguishing it from more controversial AI music tools. Co-CEO Alex Norström said the approach depends on artist consent, proper credit, and compensation, describing it as the first legal avenue for artists to participate in AI-driven music creation. Söderström added that no comparable product exists elsewhere, arguing that generative music will proceed regardless, but that Spotify’s version ensures existing artists can take part.

The announcement comes as AI-generated music increasingly floods streaming platforms; rival service Deezer recently reported that more than half of daily track uploads are now AI-generated, up sharply from the start of last year.

Spotify said a research preview of the covers and remix tool will launch to a limited group of users, without requiring artists to upload a full catalog, though no launch date was given. The feature will debut as a paid add-on, creating a new revenue stream for participating artists.