{"id":10302,"date":"2025-03-26T12:37:30","date_gmt":"2025-03-26T12:37:30","guid":{"rendered":"https:\/\/www.sonarworks.com\/blog\/?p=10302"},"modified":"2025-09-30T14:25:44","modified_gmt":"2025-09-30T13:25:44","slug":"ceo-keynote-ai-in-the-music-industry-2025","status":"publish","type":"post","link":"https:\/\/www.sonarworks.com\/blog\/research\/ceo-keynote-ai-in-the-music-industry-2025","title":{"rendered":"CEO Keynote: AI in the Music Industry \u2013 Should You Fight It, Ignore It, or Embrace It?"},"content":{"rendered":"\n

Keynote by Helmuts Bems | CEO, Sonarworks<\/strong><\/p>\n\n\n\n

This keynote presents research-driven insights to ignite industry discussions on AI in music production.<\/em><\/h4>\n\n\n\n

The context <\/strong><\/h2>\n\n\n\n

There were multiple reports in 2024 claiming that Spotify is increasingly serving AI-generated content to its user base. Here is just one example: https:\/\/www.fastcompany.com\/91170296\/spotify-ai-music<\/a>. Is this overblown clickbait or just the tip of the iceberg of a bigger change coming? I will try to provide a framework for how to think.<\/p>\n\n\n\n

In 2022, we formed a think tank at Sonarworks to try to understand the impact AI is going to have on the music industry. Since our first brainstorming session, we have conducted more than 100 interviews with industry professionals and consumers alike. Many ideas in this article came from various people we interviewed, from CEOs of industry companies to Grammy-winning engineers, artists, and casual music listeners.<\/p>\n\n\n\n

The main focus is music production; however, we also touch on broader industry questions. The goal of this article is to initiate discussion<\/a> and gather feedback. Nobody really knows what the future holds, but I strongly believe that diverse opinions and discussions will help everyone be better prepared for what\u2019s to come.<\/p>\n\n\n\n

Before diving into the details, let’s take a step back and look at the big picture of the music industry. As a proxy, I use this graph that most of you have probably seen.<\/p>\n\n\n\n

U.S Recorded Music Revenues by Format <\/h2>\n\n\n
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\"US
Source: RIAA<\/a>. Permission to cite or copy these statistics is hereby granted, as long as proper attribution is given to the Recording Industry. 1973 to 2023, Format(s): All Source: RIAA Note: Adjusted for Inflation, 2023 Dollars<\/figcaption><\/figure><\/div>\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

This is just a proxy since recording formats are only one aspect of this very complex industry. However, there is one obvious takeaway: The music industry has experienced massive revenue disruptions every 10 years. For example, the decline in CD sales took 10 years and reduced overall industry revenue from $26B to $8B.<\/p>\n\n\n\n

From a production perspective, this is the start of the funnel. All these revenues trickle down into various complex revenue streams for artists, labels, retailers, producers, recording engineers, and product manufacturers. I joined the industry in 2012, so I do not have direct experience of how the previous downturn felt. The point is: Historically speaking, the music industry is both violent and cyclical<\/strong> – more so than any other industry I know.<\/p>\n\n\n\n

It is not difficult to imagine that another major disruption is just around the corner. At first glance, AI meets all the criteria to be the next big disruptor. So far, AI has shattered all records in the speed of disruption. Just take a look at the AI adoption rates in the graph below:<\/p>\n\n\n\n

AI Growth is Unstoppable <\/h2>\n\n\n\n
\"Bar
Source: UBS \/ Yahoo Finance. <\/figcaption><\/figure>\n\n\n\n

Spotify\u2019s growth was 35% faster than Google\u2019s. TikTok grew three times faster than Instagram, and ChatGPT outpaced TikTok by a factor of five. It took ChatGPT just two months to reach 100 million users. By now, we\u2019ve become so accustomed to it that it feels normal, but historically, it is not. AI is the fastest-growing technology in human history by an exceptionally large margin. When I mentally combine AI technology with the music industry, I see many scenarios for highly disruptive change ahead.<\/p>\n\n\n\n

AI could potentially disrupt the following aspects of the industry:<\/p>\n\n\n\n