AI challenges music industry through copyright issues and streaming fraud

The music industry is facing growing challenges due to the rise of artificial intelligence, specifically regarding copyright and fraudulent distribution. In Chile, the Sociedad Chilena de Autores e Intérpretes Musicales (SCD) has raised concerns about AI-generated songs that mimic traditional folklore, such as cuecas and tonadas. Legal experts note that while using AI is not inherently illegal, the process of training these models on protected works without authorization may constitute a violation of copyright laws.

Simultaneously, a form of digital fraud has been identified where scammers use AI tools like Suno or Udio to create low-quality tracks. These tracks are then uploaded to music distribution services, such as DistroKid, under the names of established artists. This allows the fraudulent content to appear on official profiles on platforms like Spotify, Apple Music, and Amazon Music, enabling scammers to siphon off royalty payments from unsuspecting listeners. This vulnerability primarily affects less prominent artists who lack the resources to monitor their digital profiles constantly.