The music industry is experiencing a technological revolution, with artificial intelligence (AI) at the forefront of this transformation. AI is changing how music is created and shared, reshaping the business landscape and opening up new opportunities and challenges for artists, producers, and companies alike. 

As we move further into 2024, understanding the impact of AI on music creation, production, distribution, and revenue is essential for anyone involved in the industry. This report provides a detailed look at the most significant statistics and insights into AI's current state and future trends in music.

to content ↑

What is the Current State of AI in Music?

AI is reshaping how music is created, produced, and distributed, with its adoption rapidly spreading across the industry. From independent artists to significant music studios, AI tools have become integral to the creative process, enabling musicians to push boundaries, streamline production, and discover new creative possibilities.

In the next section, we’ll discuss how AI changed the music industry and how big of an impact it has made.

How is AI Transforming Music Creation?

Technology like AI is changing how we create, discover, and enjoy music in ways we never imagined possible. Just like having a super-smart musical assistant, AI helps both music creators and listeners make and find the perfect tune. 

Here's how AI is changing the landscape of music creation:

1. 74% of internet users have used AI to help them find new music.

(Market.us)

This means that 3 out of 4 people now rely on AI-powered systems, like Spotify's recommendation engine or YouTube's autoplay feature, to discover new songs and artists. These AI tools analyze listening habits and suggest similar music, making it easier for people to find songs they might like.

2. AI can generate basic melodies in under 2 seconds

(Market.us)

What once took musicians hours or days to compose can now be created by AI almost instantly. This quick generation allows musicians and producers to experiment with many different melody options in minutes. However, these essential tunes still need human creativity to develop into full songs.

3. 82% of listeners cannot distinguish AI from human compositions

(Market.us)

Over 8 out of 10 of us can’t tell if an AI or a human created a song. A prime example is “Daddy’s Car,” an AI-generated song by Sony’s Flow Machines, which many listeners believed was composed by a human musician.

AI was involved in creating “Daddy’s Car” by analyzing a massive dataset of songs, learning musical styles and patterns, and generating new melodies and arrangements, refined and produced by human musicians.

What are the Current Adoption Rates?

The music industry is rapidly embracing AI technology, from bedroom producers to professional studios. More and more artists are discovering how AI can help them create, produce, and share their music more efficiently. 

Let's look at how many artists are embracing AI technology:

4. 60% of musicians are currently using AI tools for their music.

(Ditto Music)

Think of it this way: out of a group of 10 musicians, 6 already use AI in some way for: 

• Writing songs
• Mixing tracks
• Creating artwork

These involvements in the music creation process show how AI has become as common as using a digital keyboard or recording software.

5. 20.3% of musicians use AI in their music production process.

(Mastering the Mix)

These musicians are specifically using AI to help produce their songs, from arranging instruments to mixing tracks. This shows that while many artists use AI, most still use traditional production methods.

6. 36.8% of music producers have integrated AI into their workflow.

(Rare Connections)

Over a third of professional music producers in 2024 use AI tools regularly. This indicates that AI has found its place in professional music production, though it has yet to become the dominant method.

to content ↑

How Much is the AI Music Market Worth?

The AI music market has shown remarkable growth, with valuations reaching unprecedented levels as more companies invest in this technology. From major record labels to tech startups, investments in AI music technology have increased dramatically, showing the industry's confidence in AI's role in the future of music. This is evidenced by the market's current multi-billion dollar valuation and ambitious growth projections.

What is the Current Market Valuation?

These statistics show how the AI music market has grown from a niche technology to a significant force in the music industry. 

Here are the key market value statistics:

7. Global AI in Music market valued at $2.9 billion in 2024

(Rare Connections)

Growth of the global market for generative artificial intelligence (AI) in music from 2024 to 2028. Starting at $0.27 billion in 2024, the market size is expected to increase significantly, reaching $0.95 billion by 2028. The chart highlights a compound annual growth rate (CAGR) of 28.8%, indicating rapid expansion within this sector. This growth showcases the increasing adoption of AI technology in the music industry for various applications, such as music composition, production, and distribution.

The current market value represents the total spending on AI music technology, including software, platforms, and services. The substantial figure shows how AI has already established itself as a significant part of the music industry.

8. AI in Music Industry Expected to reach $38.71 billion by 2033

(Market.us)

AI in the music industry has increased nearly tenfold over ten years, reflecting the expected widespread adoption of AI in all music creation and distribution aspects. The projection indicates strong confidence in AI's growing role in the music industry.

9. The Creator Economy's current market value is $250 billion

(Rare Connections)

According to Goldman Sachs, the Creator Economy, valued at $250 billion, will grow dramatically over the next few years. This massive growth projection shows how content creation, including AI-powered music tools, is becoming an increasingly valuable part of the digital economy.

to content ↑

How Fast Is the AI Music Market Growing?

The growth of AI in music is accelerating at an unprecedented rate, driven by technological advances and increasing adoption across the industry. This growth is reflected in market valuations, revenue predictions, and potential impacts on creators' earnings. Industry analysts and significant financial institutions are closely tracking this transformation of the music industry.

What is the Predicted Growth Rate?

The numbers show impressive growth opportunities and potential challenges for the music industry. 

Here's what the numbers tell us about market growth:

10. Global AI in Music Market to grow from $3.9 billion to $38.7 billion with 25.8% CAGR (2024-2033)

(Market.us)

Market researchers' significant growth projection shows the market will expand nearly tenfold over the next decade, demonstrating strong confidence in AI music technology adoption and development.

11.  AI music to drive a 17.2% revenue increase in the music industry by 2025

(Market.us)

AI-generated music is expected to boost overall music industry revenue by 17.2% within the next year, showing how AI is creating new revenue streams and opportunities in the market.

12. Goldmedia study warns of 27% revenue drop for music creators by 2028

(Market.us)

Research by media consultancy Goldmedia predicts that with proper compensation systems for human creators, musicians could retain up to 27% of their revenue by 2028 as AI-generated content grows. This highlights the urgent need for balanced regulations in AI music creation.

to content ↑

What are the Market Share Distributions?

Different segments of the AI music market show varying levels of dominance, with specific platforms and applications leading the way. Each segment plays a crucial role in the AI music ecosystem, from cloud services to software solutions and streaming platforms, with cloud-based services emerging as the clear market leader.

Which Segments Lead the Market?

Understanding how different segments control market share helps us see where the industry is heading. The current market share breakdown shows:

13. Cloud-based solutions dominate with 71.4% of AI music market share.

(Market.us)

Cloud-based AI music services offer easy access, scalability, and lower costs for creators and businesses. This high percentage shows that most AI music tools now operate through cloud platforms rather than local software.

14. The software segment controls 63% of the AI music technology market

(Market.us)

Software solutions, including music production tools and AI composition programs, comprise nearly two-thirds of the market. This indicates that standalone software products remain crucial despite the rise of cloud services.

15. The music streaming recommendations account for 45.7% of AI applications

(Market.us)

Nearly half of AI's use in music focuses on helping listeners discover new songs through recommendation systems. This shows how AI is not just creating music but also changing how we find and consume it.

to content ↑

How Much is Being Invested in AI Music Technology?

Investment in AI music technology continues to grow as venture capitalists and major companies recognize its potential. From significant tech companies to music industry giants, investors are pouring billions into AI music development, seeing it as the next frontier in both technology and entertainment. 

What are the Major Investments?

The investment landscape in AI music technology shows both large-scale industry-wide funding and specific company investments, along with predictions about future market needs. 

Here are the critical investment figures:

16. $50 billion invested in AI in Europe since ChatGPT launch (2022).

(Music Business Worldwide)

Since the launch of ChatGPT in November 2022, European investment in AI technology, including music AI, has reached $50 billion. This massive investment shows how generative AI has sparked a funding rush across all AI sectors.

17. Amper Music raises $4 million in seed funding.

(Music Business Worldwide)

AI music platform Amper Music secured $4 million in seed funding to develop AI-generated music technology. This investment demonstrates venture capital interest in specialized AI music creation tools.

18. €2.7 billion cumulative market gap predicted between now and 2028.

(Music Business Worldwide)

Research indicates a potential €2.7 billion gap between current investment and market needs by 2028. This figure suggests significant investment opportunities in the AI music sector to meet growing demand.

to content ↑

How are Artists Using AI in Music Production?

The adoption of AI tools varies across different aspects of music production, from composition to mastering. The data shows a clear generation gap in AI adoption, with younger artists embracing the technology more readily. AI's role has expanded beyond music creation to include visual elements and technical processes, making it a versatile tool in an artist's creative toolkit.

What are the Usage Patterns?

How artists integrate AI into their work shows diverse applications across the creative process. 

Current artist usage statistics reveal:

19. 35% of all creators have experimented with AI in music creation.

(Complete Music Update)

Over one-third of music creators have tried AI tools in their work, showing that AI has moved beyond experimental technology to become a practical tool in music production.

20. 51% of creators under age 35 actively use AI for music.

(Complete Music Update)

Young artists are leading the AI adoption trend, with over half of creators under 35 incorporating AI into their work. This suggests a generational shift in attitudes toward AI technology in music.

21. 30.6% of artists use AI to master their tracks.

(Music Business Worldwide)

Nearly one-third of artists use AI to master their music, choosing automated solutions for this technical aspect of production. This shows growing trust in AI's ability to handle complex audio processing tasks.

22. 38% of artists utilize AI for creating artwork

(Music Business Worldwide)

More than one-third of artists now use AI to create visuals for their music, from album covers to promotional materials. This demonstrates how AI's role extends beyond sound to complete artistic presentation.

to content ↑

What are the Genre-Specific Adoption Rates?

AI adoption varies significantly across music genres, with some showing higher acceptance rates than others. Electronic music producers are leading the charge, while traditional genres show more conservative adoption rates, reflecting different creative approaches and needs.

Which Genres Lead in AI Adoption?

The adoption rates across music genres reveal interesting patterns about where AI is making the most significant impact. 

Genre-specific adoption rates show:

23. Electronic music leads with a 54% AI adoption rate.

(Music Business Worldwide)

Electronic music shows the highest adoption of AI, with more than half of producers using AI tools. Given the genre's technological foundations and openness to digital innovation, this high rate makes sense.

24. Hip-hop follows closely with a 53% AI adoption rate.

(Music Business Worldwide)

Hip-hop producers are embracing AI almost as much as electronic musicians, using it for beat-making, sample processing, and automation. This high adoption rate reflects hip-hop's history of embracing new music technologies.

25.  Advertising music sees 52% AI adoption.

(Music Business Worldwide)

The commercial music sector shows strong AI adoption, with over half advertising music creators using AI tools. The need for quick, customizable music production for commercial projects drives this high rate.

26. Traditional/world music shows 30% AI adoption.

(Music Business Worldwide)

Traditional and world music genres show lower AI adoption rates, with less than a third of artists using AI tools. This lower rate likely reflects these genres' emphasis on traditional instruments and authentic cultural expression.

to content ↑

What do Artists Think About AI in Music?

Artists' opinions about AI in music are diverse, and they are enthusiastic and concerned about its impact on the industry. While many see AI as a powerful creative tool, there's a strong push for transparency and fair use, alongside worries about future income stability. This mix of hope and concern shapes how the music industry approaches AI integration.

What are the Key Attitudes?

Understanding artists’ perspectives on AI and its implications for their work is essential to navigating the future of creative and technological collaboration.

Survey results indicate:

27.  95% of artists demand transparency in AI's use of copyrighted works.

(Market.us)

Most musicians want to know when and how AI systems use their music. It's like wanting to know who's covering your song, but now it's about AI learning from your work.

28. 90% believe AI companies should ask permission before using copyrighted music.

(Market.us)

Artists are clear about ownership rights - they want control over how their music is used to train AI. This mirrors traditional music licensing, where permission is needed before using someone else's work.

29. 71% worry AI might threaten their livelihood

(Market.us)

This striking number reveals deep concerns about financial stability. Musicians are cautiously watching AI's rapid development and wondering if automated music creation could impact their ability to make a living from their art.

to content ↑

What are the Main Challenges and Concerns?

While AI in music holds great promise, it has some significant challenges that need attention. These issues cover everything from copyright problems to possible revenue losses and technical struggles. Tackling these challenges is critical to ensuring AI supports musicians instead of competing with them.

What are the Primary Issues?

We need to address some crucial issues in order to use AI effectively in the music world. These challenges show why clear rules, fair use policies, and better technology are important.

Current challenges include:

30. 21% faced copyright strikes using AI-generated content

(Rare Connection)

This is often because AI training involves data that may include copyrighted music, sometimes without proper permission. This can lead to copyright claims when AI-generated songs sound too similar to existing works, causing legal headaches and financial risks for artists.

31. 21% of Creators Faced Multiple Copyright Strikes After Using AI Generated Content

(Rare Connection)

Systems that check for copyright infringement often have trouble with AI-generated songs. These tools can mistakenly flag AI-created music as a copy of something else or miss actual violations altogether. This issue shows the need for better detection systems that can distinguish between original AI-generated content and existing works while respecting copyrights.

32. €950 million potential revenue loss in France and Germany by 2028

(Music Business World)

Studies suggest that if fair compensation systems aren’t implemented, musicians could lose significant income due to AI-generated music. France and Germany alone might see a combined revenue drop of up to €950 million by 2028. AI-made music could take market share away from traditional music, impacting artists’ earnings. This points to the need for balanced solutions that value and support human creativity alongside AI advancements.

to content ↑

What Does the Future Hold for AI in Music?

The rise of AI in the music industry has marked a significant shift in how music is created, produced, and shared. The industry is poised for rapid evolution, with AI tools becoming staples for independent artists and major studios. While adopting AI brings unparalleled opportunities for innovation and efficiency, it also introduces challenges that need addressing, such as copyright issues, fair compensation, and the preservation of human creativity.

The data presented in this report shows that AI’s role in music is expanding at an impressive rate, with market growth projections and adoption rates painting a picture of excitement and caution. As the industry navigates these changes, finding a balance between technology and traditional artistry will be crucial. The future of AI in music holds the promise of creative breakthroughs and new revenue streams. Still, it also calls for thoughtful regulation and collaboration to uphold artists’ rights and the integrity of the art form.

Sources:

Complete Music Update

Music Business Worldwide

Market.us

Wifi Talents

Ditto Music

Rare Connections

Mastering the Mix