The Success of AI Music Creators Sparks Debate on Future of Music Industry

This photo provided by Hallwood shows British AI music creator Oliver McCann, on Aug. 7, 2025, in West Hollywood, Calif. (Hallwood via AP)
This photo provided by Hallwood shows British AI music creator Oliver McCann, on Aug. 7, 2025, in West Hollywood, Calif. (Hallwood via AP)
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The Success of AI Music Creators Sparks Debate on Future of Music Industry

This photo provided by Hallwood shows British AI music creator Oliver McCann, on Aug. 7, 2025, in West Hollywood, Calif. (Hallwood via AP)
This photo provided by Hallwood shows British AI music creator Oliver McCann, on Aug. 7, 2025, in West Hollywood, Calif. (Hallwood via AP)

When pop groups and rock bands practice or perform, they rely on their guitars, keyboards and drumsticks to make music. Oliver McCann, a British AI music creator who goes by the stage name imoliver, fires up his chatbot.

McCann's songs span a range of genres, from indie-pop to electro-soul to country-rap. There’s just one crucial difference between McCann and traditional musicians.

"I have no musical talent at all," he said. "I can’t sing, I can’t play instruments, and I have no musical background at all."

McCann, 37, who has a background as a visual designer, started experimenting with AI to see if it could boost his creativity and "bring some of my lyrics to life." Last month, he signed with independent record label Hallwood Media after one of his tracks racked up 3 million streams, in what's billed as the first time a music label has inked a contract with an AI music creator.

McCann is an example of how ChatGPT-style AI song generation tools like Suno and Udio have spawned a wave of synthetic music. A movement most notably highlighted by a fictitious group, Velvet Sundown, that went viral even though all its songs, lyrics and album art were created by AI.

It fueled debate about AI's role in music while raising fears about "AI slop" — automatically generated low quality mass produced content. It also cast a spotlight on AI song generators that are democratizing song making but threaten to disrupt the music industry.

Experts say generative AI is set to transform the music world. However, there are scant details, so far, on how it's impacting the $29.6 billion global recorded music market, which includes about $20 billion from streaming.

The most reliable figures come from music streaming service Deezer, which estimates that 18% of songs uploaded to its platform every day are purely AI generated, though they only account for a tiny amount of total streams, hinting that few people are actually listening. Other, bigger streaming platforms like Spotify haven't released any figures on AI music.

Udio declined to comment on how many users it has and how many songs it has generated. Suno did not respond to a request for comment. Both have free basic levels as well as pro and premium tiers that come with access to more advanced AI models.

"It’s a total boom. It’s a tsunami," said Josh Antonuccio, director of Ohio University's School of Media Arts and Studies. The amount of AI generated music "is just going to only exponentially increase" as young people grow up with AI and become more comfortable with it, he said.

Yet generative AI, with its ability to spit out seemingly unique content, has divided the music world, with musicians and industry groups complaining that recorded works are being exploited to train AI models that power song generation tools.

Record labels are trying to fend off the threat that AI music startups pose to their revenue streams even as they hope to tap into it for new earnings, while recording artists worry that it will devalue their creativity.

Three major record companies, Sony Music Entertainment, Universal Music Group and Warner Records, filed lawsuits last year against Suno and Udio for copyright infringement. In June, the two sides also reportedly entered negotiations that could go beyond settling the lawsuits and set rules for how artists are paid when AI is used to remix their songs.

GEMA, a German royalty collection society, has sued Suno, accusing it of generating music similar to songs like "Mambo No. 5" by Lou Bega and "Forever Young" by Alphaville.

More than 1,000 musicians, including Kate Bush, Annie Lennox and Damon Albarn, released a silent album to protest proposed changes to UK laws on AI they fear would erode their creative control. Meanwhile, other artists, such as will.i.am, Timbaland and Imogen Heap, have embraced the technology.

Some users say the debate is just a rehash of old arguments about once-new technology that eventually became widely used, such as AutoTune, drum machines and synthesizers.

People complain "that you’re using a computer to do all the work for you. I don’t see it that way. I see it as any other tool that we have," said Scott Smith, whose AI band, Pulse Empire, was inspired by 1980s British synthesizer-driven groups like New Order and Depeche Mode.

Smith, 56 and a semi-retired former US Navy public affairs officer in Portland, Oregon, said "music producers have lots of tools in their arsenal" to enhance recordings that listeners aren't aware of.

Like McCann, Smith never mastered a musical instrument. Both say they put lots of time and effort into crafting their music.

Once Smith gets inspiration, it takes him just 10 minutes to write the lyrics. But then he'll spend as much as eight to nine hours generating different versions until the song "matches my vision."

McCann said he'll often create up to 100 different versions of a song by prompting and re-prompting the AI system before he’s satisfied.

AI song generators can churn out lyrics as well as music, but many experienced users prefer to write their own words.

"AI lyrics tend to come out quite cliche and quite boring," McCann said.

Lukas Rams, a Philadelphia-area resident who makes songs for his AI band Sleeping With Wolves, said AI lyrics tend to be "extra corny" and not as creative as a human, but can help get the writing process started.

"It’ll do very basic rhyme schemes, and it’ll keep repeating the same structure," said Rams, who writes his own words, sometimes while putting his kids to bed and waiting for them to fall asleep. "And then you’ll get words in there that are very telling of AI-generated lyrics, like ‘neon,’ anything with ‘shadows’."

Rams used to play drums in high school bands and collaborated with his brother on their own songs, but work and family life started taking up more of his time.

Then he discovered AI, which he used to create three albums for Sleeping With Wolves. He's been taking it seriously, making a CD jewel case with album art. He plans to post his songs, which combine metalcore and EDM, more widely online.

"I do want to start putting this up on YouTube or socials or distribution or whatever, just to have it out there," Rams said. "I might as well, otherwise I’m literally the only person that hears this stuff."

Experts say AI's potential to let anyone come up with a hit song is poised to shake up the music industry's production pipeline.

"Just think about what it used to cost to make a hit or make something that breaks," Antonuccio said. "And that just keeps winnowing down from a major studio to a laptop to a bedroom. And now it’s like a text prompt — several text prompts."

But he added that AI music is still in a "Wild West" phase because of the lack of legal clarity over copyright. He compared it to the legal battles more than two decades ago over file-sharing sites like Napster that heralded the transition from CDs to digital media and eventually paved the way for today's music streaming services.

Creators hope AI, too, will eventually become a part of the mainstream music world.

"I think we’re entering a world where anyone, anywhere could make the next big hit," said McCann. "As AI becomes more widely accepted among people as a musical art form, I think it opens up the possibility for AI music to be featured in charts."



Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
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Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)

A trial beginning in New Mexico on Monday could prompt a judge to order sweeping changes to how Facebook, Instagram and WhatsApp operate - a move Meta Platforms has warned could force it to withdraw from the state.

The case, which will be tried before a judge in Santa Fe, stems from a lawsuit filed by New Mexico Attorney General Raúl Torrez, a Democrat, accusing the social media giant of designing its products to addict young users and failing to protect children from sexual exploitation on its platforms.

At the heart of the trial is whether Meta’s platforms have created a "public nuisance" under New Mexico law. That finding would allow the judge to order wide-ranging remedies aimed at curbing alleged harms to young users. The case is being closely watched as states, municipalities and school districts across the country pursue similar claims seeking to force changes at the industry level.

Monday's trial marks the second phase of New Mexico's lawsuit. A jury in March found Meta violated the state’s consumer protection law by misrepresenting the safety of Facebook and Instagram for young users. ‌It ordered the ‌company to pay $375 million in damages.

Criticism of children's safety on social media has been mounting for years. ‌On ⁠Wednesday, Meta warned ⁠investors that legal and regulatory blowback in the European Union and the US "could significantly impact our business and financial results."

SWEEPING REMEDIES AT STAKE

Torrez’s office is expected to seek both billions of dollars more in damages and an order requiring Meta to make substantial changes to its platforms for New Mexico users, according to court filings.

Meta has said it has already addressed many of the state's concerns and taken extensive measures to ensure its young users are safe. The company said in court filings last week that many of the changes Torrez’s office is seeking are impossible for it to comply with and may force it to withdraw from the state entirely.

"The New Mexico Attorney General’s focus on a single platform is a misguided strategy ⁠that ignores the hundreds of other apps teens use daily," a Meta spokesperson said in a statement ahead ‌of the trial. "Rather than providing comprehensive protections, the state's proposed mandates infringe on parental rights ‌and stifle free expression for all New Mexicans."

A ‘PUBLIC NUISANCE’

The trial before Judge Bryan Biedscheid will examine whether Meta's conduct meets the standard for a public nuisance ‌under New Mexico law, which would allow the court to impose remedies aimed at abating the alleged harm.

A public nuisance claim targets ‌activities that unreasonably interfere with the health and safety of a community. Classic examples include blocking a public road, polluting a waterway or emitting noxious fumes.

State governments have invoked public nuisance law in recent decades to pursue a broader range of industries, including litigation tied to tobacco, opioids, climate change, and vaping, said Adam Zimmerman, a professor at USC’s Gould School of Law.

New Mexico's case is among a growing number of lawsuits accusing Meta and other social media companies ‌of intentionally designing products to be addictive to young people.

While many cases have been filed by families over specific injuries to individuals, more than 40 other states and over 1,300 school districts have ⁠filed lawsuits seeking court-ordered changes ⁠and damages under public nuisance law.

New Mexico said it plans to ask the judge to order Meta to make changes including verifying users' ages; redesigning its algorithm to promote quality content for minors; and ending autoplay and infinite scrolling for minors.

"It will be an opportunity for us to explore more deeply the size and scale and effectively the monetary value of the public nuisance harm that was a product of this business's behavior for the last, you know, 10 or 15 years," Torrez told reporters at a press conference on Thursday ahead of the trial.

The company has said in court filings that it cannot have created a public nuisance because it has not interfered with a public right. It also said there is no scientific evidence to support the idea that social media has caused mental health problems, and that many of the state’s requests are "technologically impractical or completely impossible."

In a public nuisance case, the state can also seek money damages to abate the harm. That sum could be substantial when the impact is said to have affected large segments of the population. Torrez’s office has not detailed the amount it will seek.

Meta said in court filings New Mexico plans to ask for $3.7 billion in damages to fund a 15-year mental health plan including new healthcare facilities and hiring providers, a request it said would require it pay for mental health care for all teens in the state regardless of the cause of their needs.


Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
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Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo

The Pentagon said on Friday it had reached agreements with seven AI companies to deploy their advanced capabilities on the Defense Department's classified networks as it seeks to broaden the range of AI providers working across the military.

The statement notably excludes Anthropic, which has been in dispute with the Pentagon over guardrails for the use of its artificial intelligence tools by the military, Reuters reported.

The Pentagon labeled the AI startup, which is widely used across the Department of Defense, a supply-chain risk earlier this year, barring its use by the Pentagon and its contractors.

SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft and Amazon Web Services, several of which already work with the Pentagon, will be integrated into its Impact Levels 6 and 7 network environments giving more of the military access to their products, the Pentagon said in a statement.

By expanding the AI services offered to troops, who use it for planning, logistics, targeting and a bevy of other reasons to streamline huge operations and perform more quickly, the Pentagon said in its statement it will avoid "vendor lock", a likely nod to its overdependence on Anthropic. Pentagon staffers, former officials and IT contractors who work closely with the US military have told Reuters they were reluctant to give upAnthropic’s AI tools, which they view as superior to alternatives, despite orders to remove them over the next six months.

AI has become increasingly important for the US military. The Pentagon's main AI platform GenAI.mil has been used by over 1.3 million Defense Department personnel, the agency noted in its release, after five months of operation.

Google, which is already used within the Pentagon, has signed a deal enabling the Department of Defense to use its artificial intelligence models for classified work, a source told Reuters earlier this week.

ANTHROPIC STILL A 'RISK'

Defense Department Chief Technology Officer Emil Michael on Friday told CNBC that Anthropic remained a supply-chain risk, but that Mythos, the company’s artificial intelligence model with advanced cyber capabilities that created a stir among US officials and corporate America over its ability to supercharge hackers, was a “separate national security moment.”

While numerous companies and public and private entities have gained access to a Mythos preview product to help secure their IT infrastructure against future cyberattacks, it is not clear if the Pentagon is part of that program. US President Donald Trump said last week that Anthropic was "shaping up" in the eyes of his administration, opening the door for the AI company to reverse its blacklisting at the Pentagon.

Still, the falling out reinforced the need to diversify the supply of AI tools for the military, opening new opportunities for small defense industry artificial intelligence startups.


Apple Shares Rise on Strong Quarterly Sales in Run-up to CEO Change

The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
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Apple Shares Rise on Strong Quarterly Sales in Run-up to CEO Change

The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)

Apple shares jumped 3% in premarket trading ‌on Friday after the iPhone maker posted its strongest quarterly sales growth in more than four years, a show of momentum as it prepares to hand over the reins to a new CEO.

Its latest iPhone 17 Pro series and the newly launched low-cost MacBook Neo laptop are both drawing buyers at a time of low overall demand in the consumer electronics industry due to price hikes forced by the memory chip shortage.

Even though Apple's margins for the January-March quarter and its fiscal third-quarter forecast were above Wall Street estimates, outgoing CEO Tim Cook warned that ‌higher memory costs would ‌increasingly weigh on the business from June.

Limited ‌supply ⁠of the advanced ⁠processors for iPhone have already hampered Apple's ability to capitalize on strong demand. The chips are made by Taiwan's TSMC, the leading producer of AI processors.

Analysts say Apple's clout with long-time suppliers could position it better than rivals in securing memory chips but it might have to raise prices later this year.

"The key question will be deciding the perfect balance strategically ⁠between increasing prices and maintaining profitability or focusing on ‌gaining share by not increasing prices," said ‌Nabila Popal, a senior research director at IDC.

"I think Apple will increase ‌prices of the Pro and ProMax in upcoming fall launch, however ‌even if they don't, with the super high-end iPhone fold coming up - which we expect to be well over $2,200– will help balance some of the increased costs."

RESULTS BODE WELL FOR NEW CEO

The results, including a forecast of ‌14% to 17% sales growth for the current quarter that was above estimates, bode well for the company ⁠before hardware ⁠chief John Ternus takes over as CEO in September. Cook will stay on as executive chairman.

The change comes as Apple looks to close the gap with rivals Microsoft and Alphabet, which have moved faster to roll out AI features and infrastructure.

Investors are expected to get more details about its AI plans at it annual software developer conference in June.

Some analysts said Apple's decision to no longer aim to bring its net cash - cash minus debt - to a net neutral position may help it manage its financial position better in the AI era.

The move gives it greater balance-sheet flexibility, allowing it to absorb higher costs, support share repurchases and deploy capital more strategically, TD Cowen analysts said.