Spotify has announced a new partnership with Universal Music Group aimed at allowing users to create AI-generated covers and remixes of popular songs.
The feature, unveiled on Thursday, will be offered as a paid add-on exclusively for Spotify Premium subscribers. Under the agreement, artists whose music is used in the AI creations will receive a share of the revenue generated from the tool.
Although the streaming company did not reveal the pricing structure or launch date, it confirmed that both companies had reached a licensing agreement for the initiative.
Spotify had previously hinted at plans to develop artist-focused AI music tools in collaboration with major labels including Universal Music Group, Sony Music Group, Warner Music Group, Merlin, and Believe.
At the time, the company stressed that the technology would be developed through proper licensing and collaboration rather than using artists’ work without permission.
The company also stated that artists and rights holders would have control over whether and how their music is used in the AI products, while ensuring they are fairly compensated.
Commenting on the partnership, Spotify co-CEO Alex Norström said the company wanted to ensure the technology benefits both fans and creators.
“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next. What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part,” he said.
“Through each technological transformation, we have worked together with Sir Lucian and his team to evolve the music ecosystem into a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters.”
UMG Chairman and CEO Sir Lucian Grainge also described the partnership as an opportunity to strengthen fan engagement while creating additional income streams for artists.
The announcement comes as AI-generated music continues to spark debate across the music industry.
AI music platforms such as Suno and Udio previously faced lawsuits from major record labels over alleged copyright violations linked to how their AI systems were trained and operated.
Warner Music Group and Universal Music Group had earlier reached settlements with some of the companies, while other legal disputes involving Sony Music and AI music firms remain ongoing.
Spotify’s latest move signals a different approach, with the company choosing to negotiate directly with rights holders before launching its AI music tools.
