Mon Sep 09 15:11:23 UTC 2024: ## North Carolina Musician Indicted in “First of Its Kind” AI Music Fraud Case
A North Carolina musician, Michael Smith, has been indicted for allegedly using AI bots to generate over $10 million in music streaming revenue through fraudulent means. According to the US Attorney’s Office for the Southern District of New York, Smith is accused of creating hundreds of thousands of AI-generated songs and using bots to stream them billions of times.
The indictment alleges that Smith partnered with the CEO of an unnamed AI music company, who provided him with thousands of AI-generated tracks monthly. These tracks, dubbed “instant music,” were then streamed using thousands of bot accounts controlled by Smith, generating substantial streaming revenue and metadata.
Smith was arrested on September 4th and faces potential decades-long imprisonment if found guilty. This case marks a landmark development in the emerging field of AI music, as it is the first of its kind to address the issue of artificially inflated streaming.
US Attorney Damian Williams stated, “Smith fraudulently streamed songs created with artificial intelligence billions of times to steal royalties that should have been paid to legitimate musicians, songwriters, and rights holders.”
The FBI and prosecutors are investigating the case, which highlights the growing concern within the music industry about the potential for AI to be exploited for fraudulent activities. The indictment serves as a warning to individuals considering using AI to manipulate music streaming platforms for personal gain.
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