Music artists demand transparency on Universal's AI partnership with Udio

The Music Artists Coalition issued a statement on October 30, 2025, raising concerns about Universal Music Group's partnership with AI music generation company Udio. The organization outlined three core principles that must govern AI music systems: artist consent, fair compensation, and deal transparency. While the coalition acknowledged the concept of artist opt-in, it pressed for specific answers about revenue splits, data usage, and settlement terms.

Irving Azoff, board member and founder of the Music Artists Coalition, emphasized that technological advances should not disadvantage music creators. "Every technological advance offers opportunity, but we have to make sure it doesn't come at the expense of the people who actually create the music - artists and songwriters," he stated. Azoff noted concerns about artists receiving inadequate compensation despite partnership rhetoric. "We've seen this before - everyone talks about 'partnership,' but artists end up on the sidelines with scraps. Artists must have creative control, fair compensation and clarity about deals being done based on their catalogs."

The coalition's statement followed Universal Music Group and Udio's announcement of industry-first strategic agreements on October 29, 2025. Those agreements settled copyright infringement litigation between the companies while establishing a new licensed music creation platform scheduled to launch in 2026. Udio disabled downloads as part of the deal, implementing fingerprinting, filtering, and protective measures before the updated service launches.

Artists need meaningful control over whether and how their work trains AI systems, according to the coalition. The organization highlighted complications when multiple songwriters or performers on a single song disagree about participation. This represents a significant technical and legal challenge for AI music platforms seeking individual artist consent rather than blanket label authorization.

Fair compensation remains central to the coalition's concerns. The organization questioned what percentage of revenue flows to artists versus labels versus AI companies when music trains models or generates new works. Ron Gubitz, the coalition's Executive Director, distinguished between permission and partnership. "Artist opt-in sounds promising, but participation without fair compensation isn't partnership; it's just permission," he said. "Artists create the work that makes these AI systems possible. They deserve both control over how their work is used and appropriate compensation for its value generation. It's the three C's: consent, compensation, and clarity."

Deal transparency questions extended beyond revenue splits. The coalition asked whether settlement money was paid as part of the Udio-Universal agreement, how that would be distributed to artists, and whether payouts for new revenue streams would simply reduce old unrecouped balances. Artists also sought ongoing visibility into exactly how their work functions within AI systems.

The broader context demonstrates increasing tensions between AI platforms and rights holders. Research from WPP Media released in 2025 indicated that 71% of industry experts view AI-produced creative content as likely by 2030, encompassing music, television, movies, and advertising materials. The Udio-Universal framework provides one model for how these systems might operate under licensed arrangements.

Gubitz emphasized the stakes for music's future. "The music industry is at a crossroads," he continued. "The decisions being made right now will shape how music gets created, distributed, and monetized for decades to come. That's exactly why MAC exists—to ensure artists have a seat at the table when those decisions are made."

Jordan Bromley, Leader at Manatt Entertainment and board member of the coalition, concluded with cautious optimism. "We're cautiously optimistic but insistent on details," Bromley stated. "True partnership requires appropriate oversight and remuneration for all involved parties. The industry needs to get this right—for artists, for fans, and for the future of music itself."

Copyright litigation involving AI training has intensified throughout 2025. The US Copyright Office released major guidance in May 2025 addressing when AI developers need permission to use copyrighted works. That report suggested transformativeness and market effects would be the most significant factors in fair use determinations. Meta won a summary judgment motion in June 2025 when a judge ruled that using copyrighted books to train large language models constituted fair use. However, Anthropic faced a split decision in June 2025, with courts finding that training on purchased books constituted fair use while downloading from pirate sites remained infringing.

The settlement between Universal and Udio occurred against this complex legal backdrop. Sir Lucian Grainge, Chairman and CEO of Universal Music Group, characterized the agreements as demonstrating commitment "to do what's right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying our revenue streams or defending our rights where necessary." The company previously entered AI-related agreements with YouTube, TikTok, Meta, KDDI, KLAY Vision, BandLab, Soundlabs, and Pro-Rata.

Andrew Sanchez, Co-Founder and CEO of Udio, expressed enthusiasm about the collaboration. "We couldn't be more thrilled about this collaboration and the opportunity to work alongside UMG to redefine how AI empowers artists and fans," Sanchez said. "This moment brings to life everything we've been building toward – uniting AI and the music industry in a way that truly champions artists. Together, we're building the technological and business landscape that will fundamentally expand what's possible in music creation and engagement."

The partnership positions Udio to work closely with Universal's artists, songwriters, and catalog for bringing licensed music onto the platform. Udio's existing product will remain available during a transition period, but creations will be controlled within a walled garden with protective measures implemented before the updated service launches in 2026. Artists will control how AI uses their work to create music and connect with fans, according to the joint announcement.

For the marketing technology sector, which increasingly relies on AI-powered tools for audio content creation, the Universal-Udio framework establishes precedent for licensing arrangements. Amazon introduced Audio Generator in October 2024, enabling advertisers to develop audio ad creative through automated script creation, voice and music customization. Triton Digital launched AdBuilder AI on October 30, 2025, a self-serve audio advertising platform with AI-powered creative generation supporting over 60 languages.

The Interactive Advertising Bureau's 2025 Digital Video Ad Spend and Strategy report revealed that 86% of buyers currently use or plan to implement generative AI for video advertisement creation by 2026. This adoption pattern particularly benefits small and mid-tier brands lacking resources for traditional high-quality content production. The IAB released guidance on September 3, 2025, organizing AI use cases into six distinct categories including creative generation, testing, and optimization workflows.

Revenue considerations extend beyond individual artist agreements. The settlement provides revenue opportunities for Universal's artists and songwriters beyond the compensatory legal settlement. The new subscription service will transform user engagement by creating a licensed and protected environment for customizing, streaming, and sharing music. Financial terms of the settlement remained undisclosed.

The Music Artists Coalition represents artists' interests in policy discussions, industry negotiations, and public discourse. The organization works with artists and allied organizations to establish clear principles for ethical AI in music creation, advocate for frameworks protecting artists' rights, and ensure fair compensation. The coalition stated it will continue monitoring developments in AI music generation platforms and advocating for artist protections.

Multiple songwriters and performers collaborating on single recordings present consent challenges that the coalition highlighted. Current recording agreements typically grant labels extensive rights over how recordings are used, but AI training represents a novel use case not explicitly contemplated in many contracts. Whether existing agreements provide sufficient authorization for labels to license works to AI training systems remains subject to interpretation and potential litigation.

Settlement distribution mechanisms remain opaque. The coalition questioned whether payouts from the Udio agreement would be applied against unrecouped advances or represent new revenue streams. Recording contracts typically provide that artists receive royalties only after recouping advances and production costs. If AI licensing revenue flows through existing royalty structures, many artists might not receive actual payments despite their work training the systems.

Data visibility concerns extend to understanding exactly how AI systems use copyrighted works. Training data typically gets processed and transformed rather than stored verbatim, making it difficult to trace specific works' contributions to model capabilities. The coalition seeks mechanisms for artists to see when their work trains models and how resulting AI outputs relate to their original recordings.

The Udio partnership represents what the companies described as "the next chapter of innovation between technology companies and rightsholders." This development carries significant implications for how AI platforms structure licensing arrangements when using copyrighted material for training. The framework could influence other AI music generators, text-to-speech platforms, and creative AI tools seeking to operate within licensed environments rather than relying solely on fair use arguments.

Advertising agencies and brands have accelerated adoption of AI-generated creative content across channels. Meta announced generative AI advertising capabilities on June 17, 2025, at the Cannes Lions International Festival of Creativity, introducing enhanced branding tools, upgraded video generation capabilities, and new engagement features. The advertising platform upgrades build on existing AI innovations, with Advantage+ sales campaigns already boosting return on ad spend by an average of 22%.

Legal frameworks governing AI training data remain in flux. Senator Welch introduced the TRAIN Act on July 24, 2025, requiring AI companies to disclose copyrighted material used in training datasets. The legislation creates a streamlined process for copyright holders to request district court clerks issue subpoenas to AI developers compelling disclosure of training materials or records sufficient to identify copyrighted works with certainty.

The Music Artists Coalition's statement emphasized that artist participation requires appropriate financial arrangements. Industry observers note that historical technology transitions often benefited intermediaries more than creators. Streaming services initially paid minimal royalties until sustained advocacy forced rate increases. Similar dynamics may emerge in AI music generation unless artists establish strong negotiating positions early.

Technical implementation of consent systems presents significant challenges. Individual artists lack direct relationships with AI platforms, relying instead on labels or rights organizations to negotiate agreements. Granular control over specific uses requires sophisticated rights management systems that may not exist. Building infrastructure for artists to authorize or prohibit particular AI applications while tracking usage and distributing compensation demands substantial investment.

The coalition noted appreciation for the concept of artist opt-in and granular control while maintaining that fundamental questions must be answered before evaluating whether the partnership genuinely serves artist interests. The organization stated it will monitor how the Udio-Universal framework develops during the transition period before the 2026 platform launch.

Timeline

• May 11, 2025: US Copyright Office releases major AI training report addressing copyright and generative AI
• June 17, 2025: Meta unveils comprehensive generative AI advertising tools at Cannes Lions
• June 25, 2025: Court rules Meta used copyrighted books legally for AI training in landmark fair use case
• July 24, 2025: Senate introduces TRAIN Act requiring AI companies to disclose copyright use
• September 3, 2025: IAB releases AI use case map for advertising professionals
• September 5, 2025: Anthropic agrees to $1.5 billion settlement in largest copyright case
• October 29, 2025: Udio settles copyright lawsuit, partners with Universal Music Group
• October 30, 2025: Music Artists Coalition issues response demanding consent, compensation, and clarity
• October 30, 2025: Triton Digital launches white-label audio advertising platform with AI

Summary

Who: The Music Artists Coalition, a nonprofit organization advocating for music creators' rights, issued the statement. Key figures include Irving Azoff (board member and founder), Ron Gubitz (Executive Director), and Jordan Bromley (Manatt Entertainment Leader and board member). The statement responded to Universal Music Group's partnership with AI music generation company Udio.

What: The coalition outlined three core principles for AI music systems: artist consent (meaningful control over if and how their work trains AI), fair compensation (artists sharing meaningfully in revenue), and deal transparency (clear visibility into deals and data usage). The organization raised fundamental questions about revenue splits, settlement distribution, consent mechanisms, and whether payouts would reduce unrecouped balances.

When: The Music Artists Coalition issued its statement on October 30, 2025, one day after Universal Music Group and Udio announced their partnership on October 29, 2025. The partnership establishes a new licensed platform scheduled to launch in 2026.

Where: The statement was distributed via press release through EINPresswire. The partnership between Universal Music Group and Udio affects the global music industry and sets precedent for how AI platforms license copyrighted material for training. The coalition represents artists' interests in policy discussions, industry negotiations, and public discourse.

Why: The coalition issued the statement to ensure artists maintain control, receive fair compensation, and gain transparency as AI transforms music creation and distribution. The organization emphasized that decisions made now will shape how music gets created, distributed, and monetized for decades. The coalition exists to ensure artists have a seat at the table when these decisions are made, preventing scenarios where artists end up "on the sidelines with scraps" despite partnership rhetoric.