NG Solution Team
Technology

Is AI music facing a downfall?

Artificial intelligence (AI) has been heralded as a transformative force across various industries, often associated with guaranteed success. However, in the realm of music composition, AI has not lived up to its potential. Initially, AI-driven music promised to replace expensive, copyrighted works with affordable alternatives for media use. Yet, the reality has not met these expectations, largely due to copyright issues. In regions like Korea, the U.S., and Europe, AI-generated music lacks copyright protection, allowing free usage and hindering revenue generation. YouTube’s system, which identifies and compensates for copyrighted music, also excludes AI tracks. This has made monetizing AI music challenging, causing startups in the sector to struggle. Companies like U.S.-based Suno and Udio are embroiled in legal battles with major record labels over unauthorized use of copyrighted material for AI training. To avoid such issues, AI systems would need fresh compositions, significantly increasing costs. A Korean startup’s attempt at this approach proved financially unsustainable. With venture capitalists wary of investing due to uncertain revenue prospects, AI music companies may need to explore new business models or await legal changes that offer some protection for AI creations. The challenges faced by AI music underscore the limitations of AI’s transformative capabilities.

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