US man used AI-generated songs and automated bots to manipulate streaming platforms, exposing vulnerabilities in the digital music economy.
A 54-year-old man has been sentenced to 18 months in prison in the United States after admitting to orchestrating a scheme that used artificial intelligence (AI)-generated music and automated streaming bots to fraudulently obtain more than $8 million in music royalties.
Michael Smith pleaded guilty in March to using thousands of AI-generated songs and billions of artificial streams to manipulate royalty payments from music streaming services. His case has been described as the first criminal prosecution of its kind targeting large-scale streaming fraud involving AI-generated music.
According to the allegations, Smith exploited digital music distribution and royalty payment systems by generating large volumes of music and using automated accounts to repeatedly play the tracks. The artificial listening activity made the songs appear more popular than they actually were, enabling him to collect royalties tied to the fraudulent streams.
The scheme targeted major streaming platforms, including Spotify and Apple Music, among other services.
Smith was arrested following a three-count indictment connected to the alleged operation, which prosecutors said relied on thousands of bots to continuously stream music and generate fraudulent royalty payments.
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