Readers of a certain age are acutely aware of the wild ride the music industry has been on over the past few decades — from vinyl to cassettes to CDs to mp3s to streaming, the way we listen to (and buy) music has changed dramatically.
And now, with the advent of AI, the way that music is created has experienced a seismic shift, as well. And as much change that we’ve seen in recent years, we haven’t seen anything yet, says Helmuts Bems, CEO of studio monitor and headphone calibrating company Sonarworks.
Bems’ company recently conducted a wide-ranging study called AI in the Music Industry – Should You Fight It, Ignore It, or Embrace It? Based on interviews with more than 100 industry professionals and music consumers, the goal of the study was to take a snapshot of where the industry is now so that those working in it can “be better prepared for what’s to come.”
Here are Bems’ thoughts on what the study’s data reveals about the current state and future of music.
Entrepreneur: What findings were you surprised by from your study?
Helmuts Bems: For me, the biggest surprise was just how widespread the use of AI tools already is in the professional music industry. Those on the frontlines who have to meet deadlines for commercial projects have mostly tested AI systems and have found them to be helpful. There were many anecdotes about artists submitting AI-generated songs as their own and labels not being able to detect them. Everybody thinks that it gives them a professional edge, and maybe rightly so. However, the most surprising is that these same people do not want to publicly talk about it. The consensus is that AI is an extremely potent technology and already very, very good at creating content, however, you are somehow a villain if you use it.
What were the biggest disruptions in the music industry in prior decades to AI’s ascent?
Here are two massive disruptions that stand out. In the ’90s, CDs replaced tape recordings as a format. CDs brought more focus on album releases and, interestingly, enabled skipping songs. CDs also brought a lot of economic benefits as they were cheaper to produce but were sold for more than tapes. They also created a recording revolution as digital editing became an inherent part of the production/creative process.
From 2005 to 2020, there was a period of extremely violent industry disruption that ended with the dominance of streaming as the new music consumption standard. This disruption was truly incredible as the industry lost 70% of its CD revenue. Most importantly, streaming has completely changed the rights-based payout structure. Streaming has brought about the age of playlists and singles, replacing the album concept. And it killed the music retail store. But it has brought ever more recording to ever more consumers, inspiring a massive boost in creativity.
How is AI-generated music affecting musicians’ ability to make money?
First, let’s make the distinction of what is meant by musician. There are many stakeholders in making music: Composers/producers, professional musicians, and hobby musicians.
We believe that producers and composers will be the big winners in the AI era. They will be able to deliver more content than ever, without depending on others to deliver their parts. While commercial musicians may see reduced opportunities in areas like background music or advertising, hobbyists and indie artists will be empowered by AI to create without needing expensive gear or technical training. It enables more people to express themselves musically, but it also floods the market, making it harder for individual artists to stand out or make a sustainable income.
In this new landscape, creativity alone isn’t enough — artists must also become curators, strategists, and technologists to thrive. In the long run, I am afraid about the potential for AI to discourage young people to even go into music. If AI gets really good at creating music with a click of a button, it might discourage people to try learning to play an instrument.
We believe pure AI-generated content is the big danger for musicians. The economic shift favors those who adapt — producers, composers, and creators who embrace AI tools to boost their efficiency and output. But it also means that royalties and revenue from streaming and licensing could increasingly go to platforms and AI developers instead of artists.
Where do you see the music industry in one, five, and ten years?
In 1-3 years, we’ll likely still see a hybrid world where AI tools assist creators more than replace them. Vocal and instrument transformation, AI synthesizers, mixing and mastering assistants and AI-assisted ideation will become increasingly common in professional workflows. The conversation around AI rights and licensing will heat up, especially as lawsuits from rights holders against AI companies start influencing legal frameworks.
In five years, assuming a medium disruption scenario, we expect AI-generated content to rival human-generated music in volume and quality. Streaming platforms might increasingly serve algorithmically composed content tailored to individual users in real-time. But we also anticipate a backlash — a demand for human connection, emotional depth, and authenticity. Vinyl could continue its rise, and live shows might become even more experiential and immersive.
By ten years out, real-time AI music generation based on context, like your mood, biometrics, or environment, could be mainstream. To look that far into the future, one must answer deeply psychological questions about human nature and the nature of musical expression. Even though I do believe AI will dominate some areas of the music industry, there will be domains left where humans will still be in charge. I am personally a big fan of live jazz improvisations in a very underground environment. I am convinced that 10 years from now, I will still be able to enjoy these shows, and it will still be humans performing there.
