Analysts at Citigroup say the use of artificial intelligence to create new Beatles songs shows the technology presents opportunities as well as risks for companies like Universal Music Group NV.
Singer Paul McCartney told the BBC this week that AI was used to “extract” John Lennon’s voice from an old demo and complete the “final” Beatles song. The development suggests record companies can mine historic master recordings for new content, analyst Thomas A. Singlehurst wrote in a note to clients.
The tool “will help traditional recorded music companies to ‘sweat’ their historic assets more strongly,” he added.
Citi expects the risks and rewards from AI to be “fairly balanced” and maintains a neutral rating on UMG. Bloomberg News reached out to UMG for comment.
AI-generated music has been criticized by some industry players, who say artists and rights-holders may be denied compensation if bots use the songs to create content. Universal, the record label behind Taylor Swift and The Weeknd, said training generative AI on its artists’ music was a breach of contract and copyright law.
Earlier this year, a song called “Heart on My Sleeve,” created by an unknown TikTok user with AI-generated vocals from Drake and The Weeknd, went viral after it was uploaded to the streaming service. Country singer-songwriter Chris Stapleton has called on lawmakers to stop AI from impersonating music artists.
But while AI risks increasing the amount of music available to consumers, City’s Singlehurst said the Beatles’ development adds another dimension to the debate.
“This highlights that the debate over risks and opportunities from AI in music is perhaps more nuanced than the ‘loser vs. winner’ basket debate suggests,” he added.
UMG shares were down 0.2% at 20.04 euros as of 1:57 pm on the Amsterdam market. Citigroup’s price target of 23.50 euros means the stock will rise 17% from current levels.
