FiXT Labs: Tools, Not Replacements: Navigating AI in the Music Industry

The music industry is going through another paradigm shift. We’ve seen these types of seismic changes before, and each opens up a new era of possibilities, with some thriving and others fading away. From tape machines to digital audio workstations in the ’80s and ’90s, to the transition from CDs to MP3s in the early 2000s, and from ownership to access through streaming platforms — each era has redefined how we create, distribute, and consume music. More recently, we’ve seen the power of algorithms replacing traditional gatekeepers, with discovery driven by Spotify’s Discover Weekly, TikTok’s For You Page, and YouTube recommendations.

Today, the conversation centers around AI, not just as a back-end tool, but as a creator. We are now navigating the shift from human-generated creativity to AI-assisted and, in some cases, fully AI-generated content.

It’s both exciting and scary. Many artists are inspired by generative AI tools and the new creative avenues they unlock, much like the early days of DAWs, plugins like AutoTune, and advanced effects processing, which were admittedly computer/device-assisted technologies doing things humans couldn’t do by hand. However, the same artists often express concern as they realize AI’s potential to commoditize music. In an era where anyone with a laptop or smartphone can release music globally, the emergence of fully AI-generated songs—created from a text prompt and uploaded without microphones, instruments, or engineers—is raising complex questions about authenticity and fairness.

Platforms like Deezer have begun labelling fully AI-generated content for transparency, but they have yet to demonetize it. Meanwhile, as tools become more sophisticated, licensing in sync, gaming, and media may shift toward generative options, posing potential threats to income for traditional artists and labels.

At FiXT, a 100 percent artist-owned independent record label and music publisher, we believe AI should be treated as a tool, not a replacement. Much like we embraced streaming early on, we recognize AI is here to stay. The question is how we use it. While some companies are launching AI-generated artists or labels, we focus on using AI to enhance and empower our staff and artists.

We use AI to prototype ideas, generate mockups, and streamline processes. Some of our visual designers, for example, have accelerated their workflow using AI-enhanced tools. But importantly, they still guide the process. There is no single-prompt artwork used as a final deliverable. It’s iterative prompting, compositing, editing, and using the human touch to bring together final production. It’s not AI vs. humans; it’s AI with humans.

Still, artists face real risks. And unfortunately, the broader public often doesn’t share their concern. Just as many consumers don’t think twice about how their food was sourced (i.e., whether their meat features a “humanely raised” label), the average listener may not care whether an AI-generated piece of content was ethically created. The burden falls on the industry to push for licensing frameworks and policies that ensure fair treatment.

FiXT Labs: June 2025 ft. Travis Brockett

At a recent Forbes panel during the World Economic Forum in Davos, Jason Peterson (Chairman & CEO of GoDigital Media Group and a 2025 Billboard Indie Power Player) shared a thoughtful framework. He proposed evaluating AI creation through six key aspects: inputs (training data), transforms (prompts), and outputs. These are then assessed under the lens of the “three Cs:” control, credit, and compensation.

“There are millions of creators and only a handful of generative AI companies. We need a wholesale, not retail, solution,” Peterson said. He pointed to the Music Modernization Act, which created the Mechanical Licensing Collective (MLC) to simplify licensing for DSPs like Spotify. A similar model could apply to AI.

On the legal front, attorneys are already fighting back against infringement. Entertainment lawyer Krystle Delgado (a former FiXT artist) is part of a class-action lawsuit against AI platforms SUNO and UDIO for unlicensed use of musical content.

Meanwhile, we must also distinguish between AI-native “bands” like Velvet Sundown ( Check out this Newsweek article) and virtual performers like Hatsune Miku, which has thousands of songs on Spotify with releases dating back to 2007 while boasting a profile with over three million monthly listeners. Or the recent fictional groups attached to Netflix’s KPOP Demon Hunters series, who are dominating streaming charts and boasting 10+ million monthly listeners. With Hatsune Miku, her virtual voice is powered by Vocaloid software, requires licensed usage and proper attribution, and features human creators in the credits. By contrast, projects like Velvet Sundown raise concerns by obscuring or misrepresenting their generative nature.

So what can artists, labels, and music professionals do?

1. Join the Movement

Support the organizations advocating for responsible AI and creator rights:

• A2IM, which backed the NO AI FRAUD Act.
• Merlin, which opposes unregulated AI training.
• WIN, Music Business Association, and other membership groups, including the Performing Rights Organizations.

FiXT Labs: May 2025 ft. Chantal Holmes

2. Practice Ethical AI Use

• Use AI to augment, not replace.
• Respect copyright and licensing.
• Be transparent about AI involvement.
• Avoid AI Spam, AI Slop and deceptive content (deepfakes).
• Support ethical AI platforms that respect artist consent and attribution.

3. Build a Brand & Create Experiences

To stand out in an AI-saturated landscape, do HUMAN things that AI can’t replicate by creating fan experiences.

• Create a Story Fans Can Belong To.
• Perform live.
• Invest in Direct Fan Relationships (email lists, Discord communities, Patreon memberships, etc.).

At FiXT, we believe AI should enhance our team’s output, not eliminate the team. These tools allow smaller artists and labels to compete at higher levels, but we must be intentional in their use.

FiXT Labs: April 2025 ft. Kurtis Redden

FiXT Labs: March 2025 ft. James Rhodes

Some creators will resist AI tools on principle. Others will adopt and adapt. Regardless of personal stance, the reality is clear: those who embrace AI will outpace those who avoid AI.

Creating an AI band to fool audiences is the next crypto-rush. Some might profit quickly, but many will get burned. And platforms are already responding: YouTube’s updated monetization policy, effective July 15th, 2025, will demonetize AI-generated spam.

We’ve already welcomed aspects of AI into our lives in subtle forms: autocomplete, smart assistants, personalized playlists. The challenge now isn’t about AI itself, but the scope and extent to which we utilize it.

My viewpoint isn’t to panic, but to integrate responsibly. With purpose. And with people at the heart of it. AI is a tool. Not a replacement.

Author’s Note on AI Use:
In creating this article, I spent several hours outlining ideas and writing initial drafts by hand. I then used ChatGPT as a research assistant to help fact-check, surface relevant articles, and suggest tonal refinements. While AI tools supported aspects of the editing and organization process, the final content was shaped, written, and refined through my own personal voice, judgment, and editorial oversight. —James Rhodes