Spotify partners with Merlin to expand AI-powered covers and remix platform

Spotify is broadening its approach to AI-generated music by adding a major independent label network to its upcoming covers and remix product. The company disclosed during its second-quarter earnings call that Merlin, which represents more than 30,000 independent music distributors and labels, will now partner with the platform alongside Universal Music Group on the initiative.

Staying within legal bounds#

The platform's central proposition distinguishes it from the wave of controversial AI music tools: it requires artists to opt in before their work can be remixed or covered by fans. Co-CEO Gustav Söderström emphasized this commitment, telling investors the product focuses on "real artists, not fake artists." Rather than generating entirely synthetic compositions, the tool enables fans to experiment with existing music while keeping creators in control.

Spotify's co-CEO Alex Norström highlighted three pillars of the approach: securing artist participation, ensuring proper credit, and guaranteeing compensation for rights holders. He framed this as "the first legal way to partake in this AI tailwind" for interactive music.

Response to industry surge#

The move comes amid an explosion of AI-generated content on streaming platforms. Deezer recently reported that over half of all daily track uploads are now AI-created, a sharp jump from just 10% at the start of 2025. Söderström positioned Spotify's offering as essential precisely because competitors would produce generative music regardless: "Normal generative music will happen with or without us. This product will not happen without us."

What's next#

A research preview will roll out to select users, though Spotify did not announce a launch timeline. The company indicated that artists won't need to provide their entire catalog to participate initially. The tool will launch as a paid add-on feature, creating additional revenue opportunities for participating creators.