Spotify and Universal Music Partner for AI Remix Feature

Spotify and Universal Music Group have agreed to a licensing deal that will allow subscribers to generate song covers and remixes using artificial intelligence.

The deal marks the first time the Swedish streaming company will enable listeners to use AI to create content through its platform.

The feature is expected to be a paid add-on within Spotify’s app, allowing Premium users to remix songs from participating artists and create AI-driven licensed covers. Spotify said the tool could generate additional income for artists and songwriters beyond existing royalties.

Financial terms of the agreement were not disclosed, and the companies did not specify which artists will participate. Universal Music represents artists including Taylor Swift, Ariana Grande and Billie Eilish.

Spotify’s shares rose 16% on Thursday. According to the Financial Times, the company expects revenue to grow at a mid-teens annual rate and gross profit margins to reach between 35% and 40% through 2030.

“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next. What we’re building is grounded in consent, credit and compensation for the artists and songwriters that take part,” said Spotify co-chief executive Alex Norström.

Universal Music’s chief executive, Lucian Grainge, said the deal seeks to “support human artistry” and “create additional revenue opportunities for artists and songwriters”.

“Building on our long track record of leading the industry through technology changes, and collaborating with Alex, Gustav, Daniel and the team at Spotify, this initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem,” he said.

Spotify is exploring new ways to expand beyond traditional music subscriptions and integrate AI into its ecosystem.

In early May, Spotify announced a beta feature allowing AI agents to save and play “personal podcasts,” which will be a daily briefing private to the user.

Artificial intelligence remains a pressing concern for the music industry, with artists and songwriters worried about copyright issues and the role of AI-generated music.

At the end of April, Spotify announced a new verification system to help users differentiate between human artists and AI-generated content.

The audio-streaming service said its Verified by Spotify badge—marked by a green checkmark—will appear on artist profiles and in search results in the coming weeks. The badge indicates a music profile has been reviewed and meets the platform’s authenticity standards.

“In the AI era, it’s more important than ever to be able to trust the authenticity of the music you listen to,” the company said.