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In a sweeping internal memo to Universal Music Group staff, CEO Sir Lucian Grainge detailed how the world’s largest music company is navigating the explosive rise of Generative AI, emphasizing both the opportunity and responsibility in shaping how the technology intersects with human creativity.
“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,” Grainge declared — drawing a clear line in the sand on one of the most hotly debated issues in music and technology.
Grainge revealed that UMG has become the first major label to enter formal agreements with AI developers, spanning from tech giants like YouTube, TikTok, and Meta to innovators such as BandLab and Soundlabs.
He noted that Universal Music Japan recently signed a deal with KDDI, a leading Japanese telecom company, to create new AI-driven fan experiences — underscoring UMG’s global strategy.
“While just scratching the surface of AI’s enormous potential, Spotify’s recent integration with ChatGPT offers a pathway to move fluidly from query and discovery to enjoyment of music — and all within a monetized ecosystem,” Grainge wrote, signaling how UMG views AI as a commercial frontier rather than a threat.
Artist Participation and New Revenue Streams
Grainge outlined that the next phase of UMG’s AI roadmap will center on artist participation — not replacement.
He sees Agentic AI, which employs adaptive reasoning and real-time learning, as a transformative way for fans to interact with and discover music.
“These new products could constitute a significant source of new future revenue for artists and songwriters,” he said, adding that UMG teams are already working with artist representatives to bring AI-powered creative tools directly to creators.
Partnerships with ProRata and KLAY were highlighted as examples of “responsible” AI collaborations that ensure accurate attribution, compensation, and control for artists.
In one of the memo’s strongest sections, Grainge criticized AI companies lobbying to train models on copyrighted works without consent or payment.
“These misguided proposals amount to nothing more than the unauthorized — and, we believe, illegal — exploitation of the rights and property of creative artists,” he wrote.
He reaffirmed UMG’s commitment to Artist-Centric principles, first introduced in 2023 to combat what he called “AI slop” — a flood of low-quality, unauthorized AI-generated songs polluting streaming platforms.
Recent agreements, such as with SoundPatrol, a Stanford-led startup using patented AI-tracking technology, were cited as examples of how UMG is actively protecting creators from unlicensed use.
“Market-Based Solutions Are the Answer”
Grainge believes that ethical, commercial partnerships between artists, labels, and tech developers are key to balancing innovation and protection.
“By embracing AI models that value and enhance human artistry, we are demonstrating that market-based solutions promoting innovation are the answer,” he said.
The memo positions UMG not as an opponent of AI, but as the architect of a responsible AI-powered music ecosystem — one that rewards human creators while embracing the future.
Grainge closed on an optimistic note:
“We are exploring and finding innovative ways to use this revolutionary technology to create new commercial opportunities for artists and songwriters while simultaneously aiding and protecting human creativity.”
English (US) ·