The world’s biggest label just made its stance on AI clear, and it could shape how the rest of the music industry moves forward with AI.

UMG sets the tone on AI

This week, Universal Music Group (UMG) boss Sir Lucian Grainge sent out an internal memo that could affect the entire music industry. In it, he outlines the company’s plans to approach AI, where it draws the line, and how it aims to shape a future 

Central to the memo is Grainge’s belief that they can help build a “healthy commercial AI ecosystem in which artists, songwriters, music companies and technology companies can all flourish”.

The memo outlines three key pillars guiding UMG’s approach:

  • Expanding AI partnerships
  • Artist participation in AI opportunities
  • Responsible AI development

Despite being released as an internal memo, the message has a wider effect. When the world’s biggest label is taking a stance on AI, it’s time to take note as their approach could send ripples through the entire industry.

UMG’s expanding AI partnerships

UMG revealed that it’s already “very actively engaged” with nearly a dozen companies developing AI tools that could transform fan and artist experiences. 

Some partnerships are with major players like YouTube, TikTok, and Meta, while others involve emerging startups including BandLab, SoundsLabs, ProRata, and Klay. Further afield, UMG Japan has teamed up with telecom giant KDDI on new generative AI music experiences.

Working alongside these partners, Grainge hopes they can “deliver creative tools that will enable us to connect our artists with their fans in new ways”.

A focus on responsible training and artist consent

Here’s the key part. UMG is only interested in working with “like-minded companies” that respect artist rights and their intellectual property.

In practice, this would mean if an AI model wants to use UMG’s catalog of artists’ vocals, it has to go through the proper licensing channels, with credit and compensation where it’s due. 

As a result, UMG emphasized it will only work with companies that train their models responsibly, making their stance crystal clear:

“To be clear, and this is very important, we will NOT license any model that uses an artist’s voice or generates new songs which incorporate an artist’s existing songs without their consent.”

Sir Lucian Grainge, UMG CEO and Chairman

UMG’s approach directly challenges the growing number of AI companies pushing to train models on copyrighted work without permission. Instead, UMG believes that this is no more than the “unauthorized [and illegal] exploitation of the rights and property of creative artists”.

Legal battles and cleaning up the slop

UMG’s stance isn’t just talk either. The label is currently locked in lawsuits against AI music generators Suno and Udio, accusing them of using copyrighted material without permission to train their systems. Deposit rumored licensing talks, the major labels recently expanded their case to include stream-ripping allegations, which Suno has denied.

Other measures put in place align with UMG’s broader artist-centric principles. For example, they’ve helped influence the introduction of minimum-stream royalty thresholds and measures that target streaming fraud, in order to prevent the “AI slop” polluting streaming platforms.

More recently, UMG partnered with SoundPatrol to develop technology that can detect when copyrighted works are being used in AI training without authorization. This revolutionary technology would make it easier for artists to protect and enforce their rights. 

What does this mean going forward

Despite drawing firm boundaries, UMG isn’t anti-AI. In fact, Grainge’s memo makes it clear that UMG is confident that “market-based solutions” are the answer. Essentially, collaboration with tech companies is the key to embracing innovative AI products in the industry, while still putting real artists’ best interests at heart. 

“We are confident that by displaying our willingness as a community to embrace those commercial AI models which value and enhance human artistry, we are demonstrating that market-based solutions promoting innovation are the answer.”

Sir Lucian Grainge, UMG CEO and Chairman

By focusing on responsible partnerships, UMG wants to build a system where artists, rights holders, and tech companies can all benefit. If successful, this could set a new standard for AI use in the music industry going forward.


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