Icelandic Recordings Set for Use in New Licensed AI Music Platform

Universal Music Group, which includes Iceland’s Alda Music among its labels, has announced plans to collaborate with AI music developer Udio on an app launching next year that will allow users to create AI-generated music using licensed material.

As reported by RÚV, the decision by Universal to drop its lawsuit against the company could soon bring Icelandic music into one of the industry’s most ambitious artificial-intelligence projects to date.

The shift represents a significant change in tone after months of litigation.

Speaking on Rás 1’s Lestinn, Alda Music CEO Sölvi Blöndal said the development marks “very big news,” noting that the major labels had previously objected to AI firms using copyrighted catalogues for training without payment.

“There has clearly been a compromise,” he added, though the terms remain undisclosed.

Artists Must Opt In

Sölvi confirmed that Alda Music’s catalogue, including decades of Icelandic recordings, will be part of the system, provided rights are respected.

“We are adamant that these are rights, both copyright and master rights. They cannot be tampered with,” he said.

Artists’ voices will not be permitted for AI use without explicit consent, and new works derived from existing songs will also require approval.

Despite concerns in the industry, Sölvi argues that Iceland should not stand apart from emerging technology.

“Saying we’re not going to participate is not a strategy. It’s a surrender,” he said, adding that AI music is already widespread on platforms like TikTok and YouTube.

Sölvi believes future revenue opportunities are likely. “Of course it will become a revenue stream in the future,” he said.