Technology

Tidal cuts royalties for fully AI-generated tracks

Tidal says it will stop monetizing music it identifies as wholly AI-made and will begin labeling those tracks in July.

Hana Yoshida

By Hana Yoshida · Markets Reporter

3 min read

Tidal cuts royalties for fully AI-generated tracks
Photo: The Verge

Tidal is changing how it treats AI-made music, saying tracks it identifies as entirely generated by artificial intelligence will no longer earn royalties on the service. The policy matters for artists and distributors because Tidal is drawing a payment line while still allowing some AI-generated music to remain available.

The company said in a policy update that it will not knowingly assign royalties to music it determines is wholly AI-generated. Tidal said its aim is to direct payments to original work produced, written and performed by people.

Starting July 15, Tidal said it will add an icon to tracks it has identified as 100% AI-generated. The company is beginning the royalty change immediately, according to its announcement.

Labels first, broader detection later

Tidal did not say which detection systems it is using to identify AI-made tracks. The company said it expects to expand labeling over time to cover uploads that are substantially AI-generated as tools improve and become more dependable.

The company also said detection cannot rest only with streaming platforms. Tidal said it will start enforcing an expectation that distributors correctly identify AI-generated music when they deliver it to the service.

The policy stops short of a full ban on AI-generated music. Tidal is instead separating certain tracks from its royalty system and preparing visible labels for listeners.

Fraud and deceptive uploads

Tidal said it will also remove or block AI-generated music tied to fraudulent activity beginning in mid-July. The company said that includes uses of generative AI that exploit a person’s or group’s music, name or likeness, mislead listeners or reduce the quality of the service.

Examples Tidal gave include tracks intended to deceive listeners or interfere with genuine artists. The company also cited high-volume uploads and unusual streaming activity as conduct that could trigger enforcement.

The policy places Tidal among music-streaming services trying to respond to a rise in AI-generated uploads. The company framed its rules around artist protection and listener disclosure, while leaving room for AI-made tracks that do not violate its standards.

Other streaming services have taken steps

Spotify has also adjusted its approach to AI music, according to earlier reporting by The Verge. In April, Spotify introduced a verification program that gives some confirmed human artists a green checkmark and a “Verified by Spotify” badge; profiles mainly posting AI-generated material are not eligible for that badge, The Verge reported.

Deezer has built tools to detect fully AI-generated music at upload so it can reduce the visibility of those tracks on its platform, according to The Verge. Deezer also launched a website last month that lets users scan playlists on other streaming services for AI-generated tracks, The Verge reported.

Tidal’s new rules add a different lever: payment. By removing royalties from music it identifies as wholly AI-generated while planning labels for listeners, the company is setting a policy that treats disclosure, monetization and fraud enforcement as separate issues.

This story draws on original reporting from The Verge.