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The music industry is poised for a significant transformation as major labels like Universal Music and Warner Music approach finalizing AI licensing agreements. These agreements promise to redefine music’s role and usage in the age of artificial intelligence.

Negotiations are reportedly in advanced stages with tech giants such as Google and Spotify, alongside emerging AI companies including Klay Vision, ElevenLabs, and Stability AI. The discussions are focused on licensing existing music for training sophisticated AI models and enabling the creation of entirely new AI-generated musical compositions.

Compensation structures are a central element of the negotiations. Labels are advocating for a model akin to existing music streaming services, where each use of a copyrighted work generates a micro-payment. This will require AI companies to invest in and develop software capable of accurately tracking music usage within their AI systems.