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Spotify and Universal Music Are Building an AI Covers Tool for Fans

Spotify and Universal Music Group signed landmark licensing agreements for a new fan creation tool.

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Spotify AI covers and remixes are now officially in the works, built in partnership with Universal Music Group. The feature will launch as a paid add-on for Spotify Premium subscribers. Artists and songwriters must opt in before their music can be included.

The two companies signed what they are calling landmark licensing agreements to make the service possible. Under the deal, fans will be able to create AI-generated versions of songs from participating artists. However, Spotify has not yet announced a launch date or pricing for the add-on.

Spotify AI Covers: How the Deal Is Designed to Protect Artists

Spotify co-CEO Alex Norstrom described the project as grounded in consent, credit, and compensation. He said the goal is to make the music ecosystem richer for both fans and artists. Indeed, the structure differs sharply from unlicensed AI music generators like Suno or Udio.

Universal Music Group chairman Sir Lucian Grainge also endorsed the model. He called the initiative artist-centric and rooted in responsible AI. Furthermore, he said the deal will drive growth for the entire music ecosystem and deepen fan relationships.

What This Means for AI Music and Streaming

This marks the first time a major streaming platform has built a licensed AI creation tool at this scale. Consequently, it could set a precedent for how AI-generated music is handled across the broader industry. Currently, competing tools operate without such formal artist agreements in place.

On the artist side, Spotify says participating artists earn additional revenue from every fan creation. The tool is built to drive discovery on top of that income. Additionally, the tool is designed to open new discovery paths, not just enable creation. Still, many specifics — including the exact AI technology, pricing, and voice mechanics — remain unannounced ahead of launch. Separately, Spotify also unveiled new AI podcast and audiobook features at the same investor event.

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