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

green and white logo illustration

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.

Need Deeper Intelligence on the AI Market?

AI Insider's Market Intelligence platform tracks funding rounds, competitive landscapes, and technology trends across the global AI ecosystem in real time. Get the data and insights your organization needs to make informed decisions.

Related Articles

Avatar Robotics Raises $6.5M in Seed Funding to Develop Industrial Humanoid Robots

Insider Brief Avatar Robotics has announced $6.5 million in seed funding to deploy more humanoid robots in warehouses and factories, expand its fleet and develop

AI Trends in 2026: What Is Artificial General Intelligence (AGI)?

Few phrases get thrown around 2026’s AI discourse as loosely as “artificial general intelligence.” Executives use it to describe an impressive new model launch. Journalists

SpaceX Ramps Up Tesla Megapack Purchases to Support AI Data Center Operations

SpaceX spent $295 million on Tesla Megapack battery storage units in the second quarter, bringing its total spending on the devices to $329 million so

Stay Updated with AI Insider

Get the latest AI funding news, market intelligence, and industry insights delivered to your inbox weekly.

$ 0 M

Seed round tracked

Gitar — Code Validation

Get the Weekly Briefing

Funding analysis, market intelligence, and industry trends delivered to your inbox every week.

Need bespoke intelligence?

Our team combines real-time data with decades of sector experience to guide your decisions.

Subscribe today for the latest news about the AI landscape