A singer from the United States is facing serious accusations of manipulating music streaming platforms using artificial intelligence technologies and automated bots. The allegations claim he fraudulently inflated his streaming numbers, leading to millions of dollars in illegal royalties.
The Accusations Against Michael Smith
Michael Smith, a 52-year-old singer from North Carolina, has been charged with wire fraud, conspiracy to commit wire fraud, and money laundering. Authorities allege this is one of the first instances where AI has been used in such a large-scale streaming scam.
According to the indictment, Smith distributed hundreds of thousands of AI-generated songs across various streaming platforms. To evade detection, automated bots were used to stream these tracks, sometimes up to 10,000 times simultaneously. This operation allegedly allowed Smith to earn over $10 million in illegal royalties over several years.
Investigation and Collaboration
The FBI played a significant role in uncovering the alleged scheme. The investigation highlighted that Smith reportedly began working with the CEO of an undisclosed AI music company around 2018. This collaboration allegedly involved the provision of thousands of AI-generated tracks monthly in exchange for metadata and a share of the streaming profits.
An email from March 2019 between Smith and the AI firm CEO reportedly revealed the intentional nature of the operation, with the executive stating, “Keep in mind what we’re doing musically here…this is not ‘music,’ [but] ‘instant music’).” The technology is said to have improved over time, making it harder for platforms to detect the fraudulent activity.
Impact on the Industry and Platform Responses
This case underscores the challenges posed by the proliferation of AI-generated music. Musicians and record companies are increasingly concerned about losing revenue and recognition as AI tools become more capable of creating content, sometimes potentially using existing copyrighted material.
Music streaming platforms like Spotify, Apple Music, and YouTube explicitly prohibit the use of bots and artificial streams to boost royalties. They have implemented policies to combat such behavior, including charging labels or distributors for detected artificial streams and requiring music to meet certain criteria to earn royalties.
The tensions surrounding AI in music culminated in 2023 when an AI-generated track mimicking the voices of Drake and The Weeknd went viral and was subsequently removed from platforms. Earlier this year, numerous prominent musicians signed an open letter urging the industry to address the “predatory” use of AI in content generation.
Potential Consequences
If convicted, Michael Smith faces significant prison time for the charges. This case, alongside others like a similar one in Denmark, highlights the legal and ethical challenges emerging at the intersection of AI technology and the entertainment industry.
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