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TIDAL Moves Streaming's AI Debate From Ethics to Economics

The platform's new AI policy shifts the focus from whether AI-gen music should exist to whether it should earn royalties, drawing a line in the sand.

The conversation around AI-generated music has largely been framed as an ethical one. Should streaming services allow AI music? Should it be labeled? Should artists consent before their work is used to train AI models?

With its newly published AI policy, TIDAL moves the ball in a different direction: Should AI-generated music earn royalties?

The streaming platform announced that while it will continue to allow certain forms of AI-generated music on the service, tracks determined to be "primarily AI-generated" will no longer be eligible to receive royalties or participate in TIDAL's direct-to-fan monetization programs.

Rather than banning AI music outright, the company is drawing a distinction between what can be distributed and what can be commercially rewarded.

For the past two years, streaming platforms have largely approached generative AI through transparency and moderation. Services have invested in detection technologies, introduced AI disclosure policies, and explored ways to identify synthetic content for listeners.

TIDAL's policy shifts the conversation toward economics. In doing so, the company is addressing the financial incentives that have fueled the explosion of AI uploads, many of which are designed less to reach listeners than to generate streaming revenue. It's an approach that acknowledges AI itself isn't necessarily the problem.

Many artists already use AI-assisted tools as part of their creative or administrative processes, and TIDAL's policy explicitly distinguishes between music created with AI assistance and music created primarily by AI. The platform says artists who use AI as a creative tool while remaining the primary creator of the work will continue to qualify for royalties under existing rules.

Hence, rather than taking an anti-AI position, TIDAL is attempting to define where human creativity ends and automated content begins when it comes to compensation.

Whether other streaming services adopt similar policies remains to be seen. But as generative AI becomes increasingly common across the music industry, the debate may be evolving beyond questions of ethics alone, and towards the incentives that drive creativity in the first place.

Read TIDAL's new AI policy in full.