Warner Music, AI, and the New Business of Making Music

The music industry has officially entered its “If you can’t beat them, negotiate with them” era.

According to Axios, Warner Music Group CEO Robert Kyncl believes artificial intelligence could create an entirely new source of income for artists and songwriters: getting paid not just when people listen to music, but when music is created with AI.

Yes, you read that correctly. The machines have entered the studio; and apparently, they brought a business plan.

Warner has partnered with AI music company Suno, following copyright lawsuits between major labels and AI companies. The new partnership has resulted in Suno’s latest AI models, which were developed with Warner and other music-industry partners. The companies say the new models will include revenue-sharing arrangements with participating rights holders, although the exact financial terms haven't been disclosed.

This represents a pretty dramatic shift. Not long ago, the music industry was largely treating AI as a copyright threat. Now, major companies are exploring how AI can become another licensed part of the music ecosystem.

Kyncl describes this as “creation-based” revenue: a potential new category alongside the money artists already make when their music is streamed or purchased. The idea is that artists and songwriters could voluntarily participate in AI experiences and receive compensation when their work contributes to the technology.

Of course, there is still plenty of uncertainty. Warner and Sony are also suing Anthropic over alleged use of copyrighted music to train AI systems, showing that the industry hasn't exactly decided that AI is its new best friend.

So what does this mean for artists?

Potentially, AI could become another tool and another revenue stream; rather than simply another threat. But the big questions are still about control, consent, ownership, and money.

The music industry has survived piracy, downloads, streaming, and approximately 47 different “revolutions.” Now it's trying to figure out whether AI will be the next disaster, the next business opportunity, or somehow both at the same time.

One thing is certain: the robots are making music.

And, apparently, they now have lawyers.

.axios.com/2026/09/09/warner-music-creation-revenue-artists-songwriters?utm_source=chatgpt.com