How independent labels and their artists can win the AI race…

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MBW Views is a series of op/eds from eminent music industry people… with something to say. Here, Marie Clausen, Managing Director for North America at independent record label Ninja Tune, explores AI’s impact on the independent market, highlighting the sector’s uniqueness, Merlin’s stance on AI, and a strategic, value-driven approach that benefits all stakeholders. Clausen also serves as a Board Director at Merlin, previously the A2IM Board and has been recognized as a Billboard Indie Power Player.


AI brings huge uncertainty to the music business and our artists’ livelihoods. Yet it’s a Saturday morning, and as I write this editorial on AI and the independent music sector, my ChatGPT subscription is running in the background, Motion App is optimizing my weekend schedule, Gemini is catching my typos and my music is keeping me focused. I enjoy all these AI enhancements and their obvious benefits.

AI is upon us like a tidal wave. It’s able to generate content itself, potentially displacing artists rather than empowering them. In an age of mood and genre listening, it could also reduce the diversity of music by fostering a homogenic sound, pumped into the listeners’ ears by the streaming platforms’ algorithms.

We’ve seen this kind of upheaval before. The independent sector has weathered seismic shifts: the digital music revolution, the rise of streaming and social media, the sudden loss of touring during COVID, the influence of external capital, the explosion of DIY artists, the NFT hype cycle, and ongoing market consolidation. The nimble, impassioned independent sector rose to meet every challenge, and now we must do the same with AI.

We have a choice to make. The culture that independent music brings is priceless – perhaps just start by paying what it’s worth.

THE INDEPENDENT SECTOR’S MOMENT

AI arrives at a time of hard earned success for independent music. Our share of the market is growing, and our voice is being heard more loudly than ever. The rise of digital music has democratized distribution, allowing independent artists to reach global audiences and strengthening direct to fan relationships.

Ninja Tune’s artists are thriving: from Barry Can’t Swim to Fcukers, from ODESZA to Nilüfer Yanya, from Bonobo to yeule. All of these artists are leaning into the uniqueness of their story. They are the lifeblood of what we do and their music is a testament to human creativity. Without the peaks and troughs of the human experience, none of this music could have been made.

“Our independent business is built on authenticity, artist trust and cultural connectivity. None of these qualities can be replaced by AI.”

Our independent business is built on authenticity, artist trust and cultural connectivity. None of these qualities can be replaced by AI. Still, the influx of massive amounts of potentially unregulated AI content flooding the market poses a real and looming threat.

  • First, instead of trying to stop AI, we should embrace it. By integrating AI we can unlock new realms of innovation and productivity.
  • Second, our approach must also include efficient, light touch regulation to protect our artists. To put it simply, if artists’ works are being used to train AI models, then those artists should be compensated fairly.
  • Third, AI generated music must be labelled as such, so that consumers can make informed choices. As fans, it’s real artists we fall in love with. It’s their pictures we put on our walls as kids, biographies we read, examples we follow and styles we adopt. Fans have a right to know if the music they’re being presented is synthetic – just as they have every right to listen to it regardless.
AI AS AN OPPORTUNITY

Of course, there is a future of positive outcomes from AI tools. The demands on modern artists and the complexity of our business is huge. We are all horribly familiar with the ‘always on’ culture, supercharged by social media, which turns artists into their own channels. AI, if handled right, can ease some of this burden.

There’s so much more on offer than just tools: artist-first innovation that enhances creativity, not replaces it, has massive potential and adds value; AI can be a powerful tool for great artists; fair AI licensing can open up additional revenue streams and further broaden artists’ reach; and transparent labeling of AI work enables the consumer to make an intentional choice.

This is a world that I want to live in. One where labels, artists, governments, creators and the larger creative industry come together to embrace responsible, accountable and transparent AI. Otherwise, we risk damaging everything that independent artists and labels have so painstakingly built.


MERLIN’S APPROACH TO AI

Ninja Tune has been a member of Merlin since 2009 and I, personally, have sat on the Merlin Board for over 5 years. This is an organization committed to ensuring the world’s leading independents have access to the deals, tools, and opportunities to succeed in the digital marketplace. In the age of AI, this means:

  • Partnering with AI companies committed to ethical, artist-first innovation.
  • Using Merlin’s voice – alongside A2IM, IMPALA, AIM, and WIN – to shape policies, engage with governments, and advocate for fair AI legislation.
  • Working with streaming and social platforms to integrate AI responsibly, ensuring it enhances rather than dilutes the music experience.
  • Prioritizing respect for copyright and the protection of Merlin members’ work.

THE FUTURE IS STILL INDEPENDENT

The independent sector has so much to give. Even as we compete with each other, we are fueled by the same passion for great music and art. Independent artists’ uniqueness, diversity and originality means that they have the most value to offer AI companies seeking to train on our artists’ content. They must be paid accordingly and benefit in the long run through transparent attribution systems, consent and investments in new creative works.

The influx of AI-generated content may also serve as a corrective to the frothy recorded music market, potentially fostering a more focused and resilient environment for genuine artistry and craftsmanship.

This is to our advantage and at the heart of what independents do – investing in great music and creating an environment in which artists can thrive.

The path forward is clear: By fully leaning into our culture, leveraging our collective strength, and embracing disruption on our terms, we will not only adapt – we will lead!Music Business Worldwide

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