During its second-quarter earnings call on Tuesday, Spotify once again hinted at an upcoming feature that would let music enthusiasts use AI to craft covers and remixes of artists' tracks, provided those artists give their approval. The company also revealed that Merlin, a licensing partner representing independent labels and distributors, has joined forces with Universal Music Group (UMG) on this new AI-driven initiative. This partnership brings over 30,000 labels from Merlin's network into the fold, enabling fan-made covers and remixes from artists who opt in.

Spotify has framed this AI music venture as a clear departure from the more contentious AI music startups that generate fully synthetic songs. Instead, co-CEO Gustav Söderström explained to investors on Tuesday's call that the product is centered on "real artists, not fake artists." He elaborated, "We want artists to be consenting [to add] their work into this catalog, so people can play around with covers and remixes based on their art." Co-CEO Alex Norström added, "We also obviously want to give them credit. And last but not least…we not only have the consent and give credit, but we also drive the compensation for this. So, really, we’re talking about the first legal way to partake in this AI tailwind that we see coming for interactive music."

The surge of AI-generated music has been overwhelming streaming platforms. Deezer, another music service, recently reported that over 50% of daily track uploads are now AI-produced, a sharp rise from just 10% in January 2025. Spotify informed investors that a research preview of the fan remix and covers product would initially roll out to a select group of users. The company also stated it wouldn't need a complete music catalog to launch, though it didn't specify a timeline for the preview's arrival.

Previously, Spotify mentioned that the new tool would be offered as a paid add-on, creating an extra revenue stream for artists. Söderström expressed confidence in the product's uniqueness, saying, "Our remix and covers I think is an incredibly exciting product again because there is no one else that can really do this. Normal generative music will happen with or without us. This product will not happen without us, and it needs to exist so that existing artists can participate in this."