Spotify to Introduce Licensed AI Covers Under New Universal Deal

Spotify and Universal Music Group have announced a new licensing agreement that will allow Spotify users to create AI-generated covers and remixes using songs from participating artists - a move that could significantly reshape how fans interact with music on streaming platforms.

The partnership marks the first time Spotify has formally enabled fan-created AI music directly inside its platform, with the feature expected to launch as a paid add-on for Premium subscribers. Under the agreement, per Variety, users will be able to generate licensed AI-powered covers and remixes while original artists and songwriters receive royalties from the resulting content.

While neither company has confirmed which artists will opt into the initiative, Universal Music’s roster includes some of the world’s biggest acts, including Taylor Swift, Billie Eilish, and Ariana Grande.

Spotify said the rollout is designed around “consent, credit and compensation”, with artists able to choose whether their music can be used in the AI remix system. “What we're building is grounded in consent, credit and compensation for the artists and songwriters that take part,” Spotify co-CEO Alex Norström said.

Universal Music Group chairman and CEO Sir Lucian Grainge described the initiative as “firmly artist-centric” and said the product is intended to “support human artistry, deepen fan relationships, and create additional revenue opportunities for artists and songwriters.”

The announcement arrives as the music industry continues grappling with the rapid rise of generative AI and growing concerns around copyright, artist consent and the flood of AI-generated music appearing online. Spotify previously revealed it was working with major rights holders including Universal, Warner Music Group, Sony Music and Merlin on “responsible AI products,” though details of those plans had remained unclear until now.

Beyond the AI remix tools, Spotify also unveiled a broader push toward monetising “superfans,” including early concert ticket access, personalised AI podcasts and expanded subscription features. The company said the new AI-powered offerings are expected to create additional revenue streams while increasing fan engagement across the platform.

Spotify has not yet announced a release date or pricing details for the AI remix feature.