Spotify and Universal Music Group (UMG) have announced a new licensing partnership that will allow fans to create AI-generated covers and remixes of selected songs by participating artists.Revealed during Spotify’s Investor Day presentation, the agreement introduces a planned paid add-on feature for Premium subscribers.

This tool will enable users to reimagine licensed tracks using generative AI, marking a significant step in the integration of artificial intelligence into mainstream music streaming services.

According to Spotify, the feature is designed to open up new revenue streams while also offering additional income opportunities for artists and songwriters.The company emphasised that participation will be optional, with usage grounded in “consent, credit and compensation”.

Spotify’s co-chief executive Alex Norström stated that the collaboration aims to ensure that technological innovation benefits both fans and creators, building on long-standing cooperation with UMG leadership.However, the announcement comes amid ongoing debate about AI’s role in the music industry.

Spotify previously took a hard line against AI-generated content, removing tens of millions of tracks and warning that low-quality AI material was flooding its platform.Industry concerns have also been raised over impersonation, unauthorised uploads, and automated systems being used to generate fraudulent streams.

At the same time, rival platforms such as Deezer report a rapid increase in AI-generated uploads, with nearly half of all new tracks now identified as AI-created.This broader industry trend highlights both the growing adoption of generative tools and the challenges of regulating them.

The new Spotify-UMG deal reflects an attempt to balance innovation with rights protection, though the rollout timeline for the feature has not yet been confirmed.