Spotify and Universal Music Group (UMG) have announced new recorded music and music publishing licensing agreements that will allow Spotify users to create AI-generated covers and remixes of songs from participating artists and songwriters.
The feature, which will be introduced as a paid add-on for Spotify Premium subscribers, will use generative AI technology to enable fans to create licensed versions of songs. According to the companies, artists and songwriters participating in the programme will receive compensation from revenue generated through the tool.
The announcement comes as Spotify outlined a broader AI-led strategy during its 2026 Investor Day presentation, where executives described generative AI as a growth driver for the platform and its future monetisation plans.
During the presentation, Spotify executives said the company is moving from algorithmic recommendation towards AI-generated and user-shaped experiences, including prompted playlists, personalised podcasts, and interactive fan tools.
Gustav Söderström, Spotify’s co-president and chief product and technology officer, said the company’s advantage in AI would come from applying artificial intelligence to Spotify’s proprietary user “taste” data rather than building its own large language models.
Spotify executives also said the company sees future growth opportunities in premium add-ons and interactive experiences targeted at highly engaged users, instead of relying only on subscriber growth and pricing increases.
Alex Norström, co-CEO of Spotify, said, “Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next. What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part. Through each technological transformation, we have worked together with Sir Lucian and his team to evolve the music ecosystem into a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters.”
Lucian Grainge, chairman and CEO of UMG, said, “The most valuable innovations in the music business always bring artists and fans closer together. That principle is at the heart of this pioneering AI-enabled superfan initiative, which is designed to support human artistry, deepen fan relationships, and create additional revenue opportunities for artists and songwriters. Building on our long track record of leading the industry through technology changes, and collaborating with Alex, Gustav, Daniel and the team at Spotify, this initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem.”
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