The recent settlement and licensing deal between Warner Music Group and AI music startup Udio marks a significant turning point for the music industry, shifting the narrative from legal battles over copyright to collaboration and new creative partnerships .

A new AI music platform, set to launch in 2026, is designed to be a next generation service for music creation, listening, and discovery, powered by AI trained on licensed music .

There is a new framework for AI Music

The partnership aims to build a responsible framework for AI music creation. Key principles include:

• Authorisation & licensing will happen the AI models will be trained on fully licensed and authorised music, moving away from the practice of using scraped, unlicensed data .
  
• Artists and songwriters can now choose to participate in the platform. This means they have control over whether their voice or compositions are used .
  
• Participating artists and songwriters will be credited and compensated, creating what Warner Music Group calls "new revenue streams".

This model echoes a broader industry trend. Spotify has also announced a collaboration with major labels, including Warner, to develop "artist-first" AI products based on principles of partnership, choice, and fair compensation .
Doesn't that mean re-working the Spotify model?

Either way, the precedent for the Industry is setting.
The deal is part of a larger movement to establish rules for AI in music.

Major record labels, including Warner, Universal, and Sony, initially sued AI platforms like Udio and Suno for mass copyright infringement . This rapid shift to licensing deals suggests a push to formalise relationships with AI companies.
Indications are that in these negotiations, labels are seeking not only cash settlements and future royalties, but also minority equity stakes in the AI startups, similar to the positions they took in early streaming services like Spotify.
Investor confidence in this space is clear. On the same day as the Warner/Udio announcement, Suno, announced a $250 million funding round at a $2.45 billion valuation yesterday, underscoring the financial potential of AI music technology .

For musicians this new era presents both opportunities and questions for artists.

The licensing model opens doors for artists to earn from their work in new ways, such as by allowing fans to create remixes or covers using their voice in a licensed environment .

Live performance and touring musician have gained value.
As AI generated music becomes more common, the unique, irreplaceable experience of a live human performance will likely become even more sought after.

The hope for a return to a pre-streaming level of income for many musicians remains layered. While AI creates new avenues for revenue, the market is also being flooded with new content.
The Wild Wild West era has begun, the creative 360 degree whole package and influencer impact will likely reign for a period. How we index this influx and free for all is still open.

The key for artists will be to navigate this new landscape actively, understanding the terms of participation and advocating deals that value their creativity. As well as how they use this new tool to enhance and lay out their creative output.

Which leads onto purist culture within music and Originals; this space needs advocates and people to participate in the big conversation and lay forward foundation.

At the moment with the majors being the voice and shaping the solution, the space could either increase in value to music consumers and beyond, or possibly lay foul remaining in the same position.

100% hand made has value and this value needs to be realised in the new landscape.

Live remains the space to excel, how independent compositions are monopolised for income depends on individuals prowess and the forthcoming governing factors. There is still the issue of plagiarism and it costs to fight those battles. Money the majors have.

It would be wise to advocate for AI automation when it comes to revenue drawdown. The solutions are presently possible.

Regardless the promise of new revenue is finally here, however the specific details of royalty splits and how "fair compensation" will be calculated in practice are yet to be seen.
Watch the space to see if these deals will set a high and fair standard for all creators.
It says so, so far...but to quote Chocolate Milk "action speaks louder than words".