The rise of AI music creation tools like Suno V4 has sparked a whirlwind of speculation about the future of the music industry. With its studio-quality samples and ability to replicate professional-grade sound, Suno V4 and similar technologies appear poised to revolutionize how music is made. But will this transformation spell doom for record companies, or is it simply another chapter in the industry’s evolution?
In a discussion on the SUNO/AI subreddit, a user expressed concerns about the potential for AI music to flood the market with low-quality content, obscure truly meaningful music, and make it even harder to earn a living as a musician. While these are valid concerns, they only scratch the surface of what AI means for the music industry.
Here’s my take: far from ruining record companies, AI may actually strengthen their influence. However, the landscape will undoubtedly change in significant ways, for both creators and consumers.
Good Music Has Always Been Rare
One of the main concerns voiced by skeptics is that the accessibility of AI tools will saturate the market with “shoddy” music. But let’s be honest—good music is already extremely rare. The saturation point was reached long before AI entered the picture, thanks to the democratization of music production via digital audio workstations, affordable recording gear, and platforms like SoundCloud and Bandcamp. Yet, amidst this sea of content, talented artists still manage to break through.
What separates those artists is often not just their skill or creativity, but the knack of others—producers, managers, and record labels—for identifying and developing breakout talent. This dynamic will persist, even in an AI-driven landscape.
AI: A Tool, Not a Threat
Rather than ruining record companies, AI music tools are more likely to be co-opted by them. Major labels are likely already experimenting with AI-generated artists, music, and distribution channels. Companies that own intellectual property (IP) and the brands of iconic artists will see AI as a way to breathe new life into their catalogs.
Imagine a world where fans can hear “new” Bob Dylan songs generated by AI, based on his lyrical and musical style. While this might sound controversial today, the allure of “fresh” material from beloved artists could eventually win fans over. Whether listeners will ultimately embrace these creations or reject them as unauthentic remains to be seen. What’s certain is that the industry will explore this avenue, and significant money will follow.
The Real Value of Music: IP and Brand
In recent years, record companies and investors have spent billions acquiring back catalogs from artists like Bob Dylan, Bruce Springsteen, and Taylor Swift. These acquisitions are not just about mechanical and publishing rights; the real prize is the IP and brand associated with these artists.
In an AI-driven future, owning the rights to an artist’s brand could be a golden goose. AI could enable record companies to produce “new” material under a familiar name, releasing songs, albums, or even immersive experiences tied to the IP. This creates a perpetual revenue stream that goes far beyond traditional royalties.
Challenges and Ethical Questions
However, this raises complex legal and ethical questions. If AI tools are trained on existing music catalogs, does that process infringe on the rights of the original creators? Should record companies—or AI developers—pay perpetual royalties to the artists whose work was used to train the algorithms? These questions are already being debated in courts and will likely shape the future of AI in music.
Companies that only own mechanical and publishing rights may fight hard to establish that future AI-generated IP cannot exist without paying tribute to the past. Meanwhile, labels that own full IP and branding rights will push forward with exploitation strategies, potentially making the distinction moot.
A Saturated Market: Opportunity or Oversaturation?
AI does lower the barrier to entry for music creation, which could lead to a flood of new creators entering the space. While this might make it harder for individual artists to stand out, it also opens up exciting new opportunities. AI tools allow creatives with a story to tell or a knack for lyrics to realize their visions without needing expensive studio setups or technical expertise.
The field will become increasingly crowded, but innovation and storytelling will always find a way to shine. Artists who can leverage AI as part of a larger creative strategy—combining music with AI-generated visuals, narratives, or immersive experiences—will likely carve out new niches.
The Future of Music: Reinvention, Not Ruin
The idea that AI music will “ruin” record companies misunderstands both the resilience of the industry and the adaptability of creative professionals. AI will not eliminate the need for artists, labels, or producers—it will simply change the way they operate. Just as the advent of streaming disrupted traditional revenue models, AI will force the industry to evolve yet again.
Far from being an existential threat, AI represents a new frontier for music. It has the potential to make creation more accessible, open up new forms of expression, and even allow us to revisit the legacies of iconic artists in innovative ways. Whether the future of AI in music leads to unprecedented creativity or an overabundance of “fast food-like” content, one thing is certain: the story of music and technology is far from over.
Let’s see how it plays out. It surely will.
