Universal and Warner are preparing the first deals with AI companies to use music to train models

Universal Music Group and Warner Music are in the final stages of negotiations with technology companies over licensing deals in the field of artificial intelligence. According to the Financial Times, the agreements could be concluded in the coming weeks and would be the first large-scale contracts that will define the rules of music use in the era of generative AI.

Negotiations are underway with Google, Spotify, and a number of AI startups including Klay Vision, ElevenLabs, and Stability AI. Meanwhile, several music generators, including Suno and Udio, remain in legal disputes with labels over copyright infringement.

The main issue in the negotiations is the compensation model. The labels insist on a mechanism similar to streaming services: each use of licensed music or its fragments to train models or generate new tracks should bring a micropayment. To do this, AI companies must implement special software that will allow them to track which songs are used and how often.

The deals could encompass the catalogs of global stars including Taylor Swift, Ariana Grande and Charli XCX, and could form the basis for a new business model for the entire industry. At the same time, they could reduce the legal uncertainty that has surrounded the development of music AI in recent months.