\u201cAI slop\u201d<\/a> on streaming services, pointing out UMG\u2019s unveiling of \u201cartist-centric\u201d principles at the top of 2023 \u2014\u00a0notably before the AI revolution really began taking hold in the music business later that year \u2014 that he says were designed to \u201ccombat what is essentially platform pollution.\u201d <\/p>\n\n\t\u201cSince then, many of our platform partners have made significant progress in putting in place measures to address the diversion of royalties, infringement and fraud \u2014\u00a0all to the benefit of the entire music ecosystem,\u201d he wrote, later noting UMG\u2019s recently announced collaboration with SoundPatrol, which utilizes neural fingerprinting that it says can detect the use of copyrighted material in AI-generated songs (Sony also partnered with the company).<\/p>\n
\n\tRead Grainge\u2019s full memo below.<\/p>\n
\n\tDear Colleagues,<\/p>\n
\n\tI am writing today to update you on the progress that we are making on our efforts to take advantage of the developing commercial opportunities presented by Gen AI technology for the benefit of all our artists and songwriters.\u00a0\u00a0<\/p>\n
\n\tI want to address three specific topics:\u00a0\u00a0<\/p>\n
Responsible Gen AI company and product agreements;<\/p>\n
How our artists can participate; and\u00a0<\/p>\n
What we are doing to encourage responsible AI public policies.<\/p>\n
\n\tUMG is playing a pioneering role in fostering AI\u2019s enormous potential.\u00a0 While our progress is significant, the speed at which this technology is developing makes it important that you are all continually updated on our efforts and well-versed on the strategy and approach.\u00a0\u00a0<\/p>\n
\n\tThe foundation of what we\u2019re doing is the belief that together, we can foster a healthy commercial AI ecosystem in which artists, songwriters, music companies and technology companies can all flourish together.\u00a0\u00a0<\/p>\n
\n\tNEW AGREEMENTS<\/p>\n
\n\tTo explore the varied opportunities and determine the best approaches, we have been working with AI developers to put their ideas to the test.\u00a0 In fact, we were the first company to enter into AI-related agreements with companies ranging from major platforms such as YouTube, TikTok and Meta to emerging entrepreneurs such as BandLab, Soundlabs, and more.\u00a0\u00a0Both creatively and commercially our portfolio of AI partnerships continues to expand.<\/p>\n
\n\tVery\u00a0recently, Universal Music Japan announced an agreement with KDDI, a leading Japanese telecommunications company,\u00a0to develop new music experiences for fans and artists using Gen AI.\u00a0 And we are very actively engaged with nearly a dozen different companies on significant new products and service plans that hold promise for a dramatic expansion of the AI music landscape.\u00a0 Further, we\u2019re seeing other related advancements.\u00a0\u00a0While just scratching the surface of AI\u2019s enormous potential, Spotify\u2019s recent integration with ChatGPT offers a pathway to move fluidly from query and discovery to enjoyment of music\u2014and all within a monetized ecosystem.\u00a0<\/p>\n
\n\tHOW OUR ARTISTS CAN PARTICIPATE<\/p>\n
\n\tBased on what we\u2019ve done with our AI partners to date, and the new discussions that are underway, we can unequivocally say that AI has the potential to deliver creative tools that will enable us to connect our artists with their fans in new ways\u2014and with advanced capability on a scale we\u2019ve never encountered.\u00a0\u00a0<\/p>\n
\n\tFurther, I believe that Agentic AI, which dynamically employs complex reasoning and adaptation, has the potential to revolutionize how fans interact with and discover music.<\/p>\n
\n\tI know that we will successfully navigate as well as seize these opportunities and that these new products could constitute a significant source of new future revenue for artists and songwriters.\u00a0\u00a0<\/p>\n
\n\tWe will be actively engaged in discussing all of these developments with the entire creative community.<\/p>\n
\n\tWhile some of the biggest opportunities will require further exploration, we are excited by the compelling AI models we\u2019re seeing emerge.\u00a0\u00a0<\/p>\n
\n\tWe will only consider advancing AI products based on models that are trained responsibly.\u00a0 That is why we have entered into agreements with AI developers such as ProRata and KLAY, among others, and are in discussions with numerous additional like-minded companies whose products provide accurate attribution and tools which empower and compensate artists\u2014products that both protect music and enhance its monetization.<\/p>\n
\n\tAnd to be clear\u2014and this is very important\u2014we will NOT license any model that uses an artist\u2019s voice or generates new songs which incorporate an artist\u2019s existing songs without their consent.<\/p>\n
\n\tNew AI products will be joined by many other similar ones that will soon be coming to market, and we have established teams throughout UMG that will be working with artists and their representatives to bring these opportunities directly to them.<\/p>\n
\n\tRESPONSIBLE PUBLIC POLICIES COVERING AI<\/p>\n
\n\tWe remain acutely aware of the fact that large and powerful AI companies are pressuring governments around the world to legitimize the training of AI technology on copyrighted material without owner consent or compensation, among other proposals.<\/p>\n
\n\tTo be clear: all these misguided proposals amount to nothing more than the unauthorized (and, we believe, illegal) exploitation of the rights and property of creative artists.<\/p>\n
\n\tIn addition, we are acting in the marketplace to see our partners embrace responsible and ethical AI policies and we\u2019re proud of the progress being made there.\u00a0 For example, having accurately predicted the rapid rise of AI \u201cslop\u201d on streaming platforms, in 2023 we introduced Artist-Centric principles to combat what is essentially platform pollution. \u00a0\u00a0Since then, many of our platform partners have made significant progress in putting in place measures to address the diversion of royalties, infringement and fraud\u2014all to the benefit of the entire music ecosystem.<\/p>\n
\n\tWe commend our partners for taking action to address this urgent issue, consistent with our Artist-Centric approach.\u00a0 Further, we recently announced an agreement with SoundPatrol, a new company led by Stanford scientists that employs patented technology to protect artists\u2019 work from unauthorized use in AI music generators.\u00a0\u00a0<\/p>\n
\n\tWe are confident that by displaying our willingness as a community to embrace those commercial AI models which value and enhance human artistry, we are demonstrating that market-based solutions promoting innovation are the answer.\u00a0\u00a0<\/p>\n
\n\tLEADING THE WAY FORWARD<\/p>\n
\n\tSo, \u00a0as we work to assure safeguards for artists, we will help lead the way forward, which is why 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. \u00a0 \u00a0<\/p>\n
\n\tI\u2019m very excited about the products we\u2019re seeing and what the future holds.\u00a0\u00a0I will update you all further on our progress.<\/p>\n
\n\tLucian<\/p>\n
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