Spotify Expands AI Remix Tool With Merlin Partnership

Spotify is moving forward with plans to launch an AI-powered tool that will let users create covers and remixes of licensed music, announcing a new partnership that significantly expands the catalog available for the feature.

During the company's second-quarter earnings call on Tuesday, executives revealed that Merlin—a licensing organization representing independent labels and distributors—has joined Universal Music Group in supporting the initiative. The partnership brings more than 30,000 labels from Merlin's network into the program, which will operate on an opt-in basis for participating artists.

A consent-first approach to AI music

Spotify's co-CEOs emphasized that the product is designed to differentiate itself from controversial AI music generators that have flooded streaming platforms with fully synthetic tracks. Gustav Söderström, co-CEO, told investors the focus would be on "real artists, not fake artists."

The framework centers on three principles: artist consent, proper attribution, and direct compensation. "We're talking about the first legal way to partake in this AI tailwind that we see coming for interactive music," said co-CEO Alex Norström.

The tool will launch as a paid add-on, creating a new revenue stream for participating artists. Spotify plans to begin with a research preview available to a limited user group, though the company did not specify a timeline. Executives noted the product would not require a complete music catalog to launch.

Why it matters

Spotify is attempting to establish a legal and ethical framework for AI-generated music at a moment when the technology threatens to overwhelm streaming platforms. Music streamer Deezer recently reported that more than 50% of daily track uploads are now AI-generated, up from just 10% in January 2025. By building a consent-based system that compensates artists, Spotify is positioning itself as a gatekeeper that can channel fan creativity while protecting creator rights—a model that could influence how the broader industry handles AI-generated content.

Competitive positioning

Söderström argued that Spotify's approach creates a defensible product in a crowded AI music landscape. "Normal generative music will happen with or without us," he said. "This product will not happen without us, and it needs to exist so that existing artists can participate in this."

The emphasis on artist participation and compensation represents a direct response to criticism that AI music tools exploit creators' work without permission or payment. By securing partnerships with major rights holders like UMG and Merlin before launch, Spotify is building infrastructure that unauthorized AI music services cannot replicate.

Details on pricing, user interface, and the scope of remix capabilities remain undisclosed. The company has not indicated whether the tool will use proprietary AI models or license technology from third parties.

These details were first reported by TechCrunch.