AI-generated tunes are flooding major streaming services — even if no one is really listening to them.
Now, US federal prosecutors have indicted a North Carolina man named Michael Smith for allegedly using artificial intelligence tools to generate hundreds of songs attributed to fake bands. They were consumed by fake listeners but generated real money in the form of royalty payments from the streaming services. By doing this, the government alleges, Smith orchestrated a complex fraud that stole $10 million from streaming services, including Spotify, Apple Music, and Amazon Music.
“Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders whose songs were legitimately streamed,” Damian Williams, the US attorney for the Southern District of New York, said in a statement.
It’s a first-of-its-kind prosecution but points to an emerging type of fraud: When everything can be faked, real money can be made very quickly.
