In the United States, Michael Smith, a musician from North Carolina, has been accused of using artificial intelligence and bot accounts to fraudulently generate over ten million dollars in revenue from streaming platforms. This marks the first case of a musician being charged for such actions, shedding light on the darker aspects of AI usage in the music industry.
Smith is alleged to have collaborated with a co-conspirator to purchase hundreds of thousands of AI-generated songs and used up to a thousand bot accounts to create billions of fake plays on platforms like Spotify, Apple Music, and YouTube Music. His methods were so covert that these fraudulent streaming revenues eventually squeezed out legitimate income for genuine artists.
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To cover his tracks, Smith registered these bot accounts under aliases and spread the traffic across a vast number of AI-generated songs, whose titles and artist names were randomly generated. According to the prosecution, streaming platforms and copyright organizations explicitly prohibit any form of fake traffic, but Smith and his co-conspirator repeatedly denied any involvement in traffic manipulation, despite knowing full well the fraudulent nature of their actions.
The prosecution has charged Smith with wire fraud, conspiracy to commit wire fraud, and conspiracy to launder money. If found guilty, he not only faces potential imprisonment but also the loss of all money and assets obtained through these criminal activities.
Although Smith's case is not directly related to emerging AI music generators like Udio or Suno, it undoubtedly provides more ammunition for critics who argue that the proliferation of AI-generated music is eroding artists' already meager streaming revenues.
Recently, over 200 musicians, including Billie Eilish and Katy Perry, have jointly sent an open letter to AI companies, urging them to stop using technologies that infringe upon artists' rights. Many professional musicians are concerned about their livelihood, fearing that their works will be used to train AI models, generating a flood of music that further dilutes their copyright income.