Spotify and Universal Music Group have struck a licensing deal that will let users create AI-generated covers and remixes using songs from participating artists. The upcoming feature will launch as a paid add-on for Spotify Premium subscribers.
The agreement covers both recorded music and music publishing rights, enabling Spotify to introduce a generative AI tool for fan-made tracks. Under the arrangement, original artists and songwriters will directly share in the revenue generated from AI-created content based on their licensed works.
Spotify Co-CEO Alex Norström said the initiative is grounded in "consent, credit, and compensation" for creators. Universal Music Group Chairman and CEO Sir Lucian Grainge described the project as an artist-centric effort designed to deepen fan engagement while creating additional revenue opportunities. Neither company has confirmed which UMG artists or catalogs will participate.
The announcement was made during Spotify's Investor Day presentation, where the company also unveiled several other AI-powered initiatives. These include an AI-powered audiobook creation tool, new features for podcasters, a desktop app for producing personal podcasts with AI, and reserved concert ticket access for top fans.