Spotify and Universal Music will let users create AI covers and remixes of songs. The feature is designed to pay artists and uses consent-based licensing. It increases Spotify’s AI push and puts it in competition with AI music startups like Udio and Suno. Spotify has signed a new agreement with Universal Music Group that will allow subscribers to create AI-generated song covers and remixes directly on the streaming platform, marking the first time Spotify has officially introduced user-generated AI music tools. Although the companies did not reveal the financial details of the agreement or specify which artists will participate, Universal Music’s catalogue includes global stars such as Taylor Swift, Ariana Grande, Drake and Billie Eilish. The partnership places Spotify in closer competition with AI music startups like Udio and Suno, both of which already offer tools for creating music using artificial intelligence. According to the companies, the new feature is expected to provide an additional income stream for artists and songwriters alongside the royalties they already receive from Spotify. Spotify co-CEO Alex Norström said the project is being developed around “consent, credit and compensation” for participating artists and songwriters. Major record labels have increasingly been pursuing licensing agreements to protect their music catalogues as AI-generated songs continue gaining popularity and become harder for listeners to distinguish from human-created music. Last year, Udio reached agreements with Universal Music Group and Warner Music Group to settle copyright disputes, while Suno also resolved legal issues with Warner Music Group. However, both AI music startups are currently facing class-action lawsuits filed by more than 1,800 independent artists, who claim the companies’ activities harmed vulnerable members of the music industry. Spotify has already been expanding its use of artificial intelligence through several music discovery features aimed at improving user engagement. These include voice interaction for its AI DJ feature and playlist generation tools that respond to natural-language prompts from users. Post navigation Google I/O 2026: The Rise of the “Intelligence System”