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The long-term effects of AI on the music industry as of 2023

Many sectors of the music industry want to use AI to increase profits. There have been many avenues to showcase how to creatively benefit from AI in the short term, but not long-term benefits. Many don’t know where to implement AI into their creative or logistical practices because they don’t understand the long-term benefits. This is why many have not leveraged the technology, as they can’t see how it will benefit them in the long run, especially when it comes to profits and affecting their current cash flow.

I still don’t use AI in every aspect of my business, but I do use it on a regular basis for these shows.

Record Labels Pt 1

Record labels need AI to reduce production costs and to increase the output of new music, which is where their revenue struggles the most. Top-line revenue from new signees is crucial. If creators can create music faster and more efficiently, then labels can sign faster, distribute faster, and reap the profits faster. All of this is to put off this losing battle for new revenue that they're up against.

Record Labels Pt 2

Although major record labels will not implement the creative aspects of the AI process directly, they will create strategic partnerships to allow these creative tools to be introduced into the marketplace. So, if you could guess it, the labels will eventually become owners of creative AI tools that allow users to create with tools that would require their permission to either use the final product or, on a subscription basis, use the software to make music that they will end up signing, which creates an income loop. Essentially, this is RCA Victor all over again.


As subscriptions reach critical mass, streaming services need artists to make more content faster to keep listeners engaged due to new subscription numbers slowing down. Therefore, if more people stay on the servers, the DSPs can offer more services with increased prices to hold off the slowdown of new subscription signups. In comes AI because now DSPs can create new experiences that people will ultimately increase their subscription fees for, thus allowing the DSPs to make more money.


Artists, if they stay independent, will benefit the most because of the sheer amount of speed they can obtain to grow a multimedia brand. The turnaround time on profit seems to be insane. Of course, the DSPs benefit from your success, and your label will succeed first before you sign, if you do. However, a more efficient process will allow for scaling your brand to happen almost overnight, provided your product is dope, well planned out, and executed.

The long-term benefits make an outside label more optional than ever simply because their staff can be replaced with AI. Data analysis and trend forecasting will be implemented into the artist process early, which will rule out a label as they begin to scale. However, it will yield this person…

The Street Executive (Agency)

Street A&Rs, aka the person with all the relationships, will be able to build their databases faster and, if they are smart, broker deals faster with indie artists and creators than dealing with a major to get what you need at a cheaper cost. Why would the cost be cheaper? Because nobody wants to sign with street execs; they just want their connections. Smart people sign with independent agencies, not individual street execs.

My Experience

I’ve noticed that AI has allowed me to be more creative and precise with my shows, but at the same time, it has taken time to implement the technology into certain aspects of my business. When I do implement new AI technology, I also wonder if it is going to be worth the learning curve and time for each one of the processes I want to speed up in my business. I can honestly say, though I love ChatGPT, I still love to do some things manually.

Do You Think AI Will Replace Labels?

I think it will… eventually. The staff will be further reduced to people who just sign for equity and ownership, and all services, including A&R, will be outsourced. Only the presidents and VPs will be left, and all departments will be contractors.

I Feel Like It’s a Bit Much to Learn AI. When Should I Add It to My Process?

I think you should jump in now to start experimenting with it at least. You don't want this technology to pass you by and you’re playing catchup.

What Are Your Favorite Tools?

Right now, ChatGPT and testing out the different plugins ChatGPT has. I’m also still working on Descript.

Here’s What I Suggest

As a music industry professional, I encourage you to explore the potential of AI in your work. Start by identifying areas where AI can enhance your productivity and creativity. Embrace the learning curve and be open to the long-term benefits that this technology can offer.

Check This Out!

If you're a music creative or executive looking to build your label or publishing company in 60 days or less, grab the 60-Day Record Label Course and get it done today! You’ll gain the ability to get real funding, avoid contractual pitfalls, and keep the middleman out of your pockets. Click the link below to get started now! If you’re skeptical, grab the free guide, "10 Ways to Increase Your Record Label Profits," which comes with a free split sheet download.

Positive Changes

By utilizing AI in the music industry:

  • Increased efficiency in creating and producing music

  • Faster turnaround time for launching new projects

  • Greater scalability and growth potential for your brand

  • Improved data analysis and insights for decision-making

  • Enhanced engagement and satisfaction among listeners and subscribers

  • Potential for higher profits and revenue generation

Negative Consequences

If you don't embrace AI in the music industry, you may face:

  • Slower production processes compared to competitors

  • Difficulty in keeping up with the changing demands of listeners and subscribers

  • Limited growth opportunities and potential loss of market share


Embrace the power of AI in the music industry to transform into a forward-thinking, innovative professional. Incorporate AI into your processes for increased efficiency, scalability, and profitability. Don't let the learning curve hold you back—start experimenting with AI now and reap the long-term benefits.


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