A folk-style band called Velvet Sundown recently soared past one million Spotify streams before revealing the truth: neither the musicians nor the music were real. Created entirely by artificial intelligence, the project has ignited a fierce debate within the music industry, exposing the growing tension between innovation and authenticity in the age of generative tech.
Initially received as a breakthrough indie act, Velvet Sundown’s backstory, visuals, and music were all generated by platforms like Suno, with no human musicians involved. Once exposed, the revelation provoked criticism from major rights organisations including the Ivors Academy and BPI, who argue that AI-generated music without disclosure undermines the integrity of the art form. Calls for regulatory action have intensified, especially around issues like copyright transparency, dataset disclosure, and fair compensation for human creators whose work may have unknowingly trained these models.
Streaming platforms are responding unevenly. Deezer has begun tagging AI-generated tracks and flagging suspicious streaming activity, while Spotify continues to host such content without labelling, drawing accusations of promoting “ghost artists” that divert revenue from legitimate musicians. With deepfakes and AI vocals, such as unauthorised tracks using Celine Dion’s likeness, gaining traction, the industry is facing an urgent need for accountability.
At the regulatory level, discussions are underway around mandatory metadata tagging, digital watermarks, and revised licensing frameworks to safeguard creative rights. Research labs have already developed AI-music detectors boasting near-perfect accuracy, but concerns remain over keeping pace with evolving generative tools. Meanwhile, some artists, including Björn Ulvaeus and Imogen Heap, see AI as a collaborative asset, provided ethical boundaries are maintained.
For the global tech and entertainment sectors, the lesson is clear: generative AI is not a novelty; it’s an active force reshaping value chains. The Velvet Sundown case underscores the importance of transparency, attribution, and consent in digital content creation. As AI-generated music grows in reach and realism, the industry must ensure its future honours both innovation and the irreplaceable role of human artistry.
