How Blockchain Can Solve the Music Industry's AI Problems

When Napster came along in 1999, the music industry was going through an existential crisis. The advent of peer-to-peer digital file sharing has devalued music and sent the entire industry into a downward spiral, leaving traditional gatekeepers wondering what’s next.

The emergence of the music streaming ecosystem offers a practical solution. But before that, labels and artists lost billions in revenue to digital piracy. As artificial intelligence emerges, the technology’s potential impact on intellectual property ownership and compensation has many concerned that history will repeat itself.

The music industry has learned from the Napster era: It has taken steps to protect copyright and intellectual property, which eventually led to the development of digital music platforms and streaming services such as Spotify and Apple Music. Just as Napster revolutionized the distribution and consumption of music, upending the industry in the early 2000s, AI’s revolutionary impact on creation will change the music industry paradigm.

Many worry that artificial intelligence could usher in a new era of online music piracy, as Napster did. Advances in artificial intelligence in music composition mean copyright ownership is becoming increasingly complex. AI tools are able to create entire songs without direct human input, but using models that are based on human creations, which raises the question of who owns the rights to these creations and how they are licensed and monetized .

In an environment of uncertain and ambiguous rights, the transparent, decentralized and immutable nature of the blockchain can balance the introduction of AI-generated content by creating a fair currency system, thereby protecting the intellectual property rights of musicians.

Tokenization offers musicians a path to defined digital ownership and transparent distribution of rights. In this process, the digital intellectual property (that is, the copyright of the song) is confirmed by the token (usually NFT or non-tamperable token) minted on the blockchain. Royalty payments are then facilitated through secure, transparent smart contracts built on the blockchain that don’t require the intervention of third-party banks or music companies. Best of all, royalties can be distributed in perpetuity, ensuring tracking and attribution throughout the life of the created work.

Incorporating Non-Fungible Tokens (NFTs) into AI-generated productions and workflows will ensure that music ownership is clearly traceable on the blockchain network and creators are paid fairly. In theory, by providing verification of the original song or track, a particular artist could earn royalties whenever an AI model creates an output that includes their sound. In this way, the combination of artificial intelligence and blockchain will benefit well-known artists, fans and musicians.

Knowing that there is an opportunity to protect their work, artists still have the leeway to experiment with AI in the creative or compositing process, and even share royalties with fans. Musicians such as Holly Herndon and Yacht already use AI as a tool to push their creative limits; while artists like Grimes go a step further, publicly declaring that she will share 50 percent of any successful song that uses her AI-generated sound model. %profit.

Ultimately, the future of music is in the hands of those who adopt and drive these game-changing innovations. By fostering a culture of innovation and embracing new technologies, the music industry can create an environment that benefits everyone. Blockchain is already solving the biggest problems in the music industry, and AI has the potential to help improve the process, but this has yet to be explored.

As new technologies are introduced into the music industry, it is our responsibility to avoid the mistakes of the past and focus on how to create value for all involved. For now, it appears the music industry is waking up early to the potential dangers of artificial intelligence and looking to see opportunities for creative advancement.