US man pleads guilty to defrauding music streamers out of millions using AI

A North Carolina man, Michael Smith, pleaded guilty to defrauding music streaming platforms and musicians out of millions in royalties by using AI-generated songs and automated “bots” to artificially boost stream counts.
Smith’s fraudulent scheme involved generating thousands of fake songs using artificial intelligence and streaming these fake songs billions of times to fraudulently obtain over $10 million in royalty payments.
This case marks one of the first successful prosecutions of AI-related fraud in the music industry, highlighting a growing concern over fake music that threatens streaming services and deprives genuine musicians of their earnings.
As part of a plea deal, Smith faces up to five years in prison and could forfeit more than $8 million when he is sentenced in July.
The case underscores the growing issue of AI-generated music, which is diverting funds from musicians and songwriters whose songs were legitimately streamed by real consumers, posing a new threat to the industry that has been grappling with music piracy.

US man pleads guilty to defrauding music streamers out of millions using AI | US crime