AI music is changing how businesses cut costs and how artists lose ground

As AI-generated tracks replace licensed music in shops and cafés, songwriters warn of diluted royalties, blurred authorship, and long-term risks to the creative economy.

AI-generated music is no longer limited to experimental playlists or online novelty channels. It is increasingly becoming the default background sound in small businesses, from barber shops and cafés to convenience stores and gas stations, as owners weigh cost, compliance, and operational risk.

For many Micro, Small, and Medium Enterprises (MSMEs), playing licensed music comes with annual fees ranging from ₱9,000 to more than ₱20,000 under rules enforced by the Filipino Society of Composers, Authors and Publishers (FILSCAP). AI-generated music removes that layer entirely, offering unlimited, royalty-free sound with minimal legal exposure, making it an attractive option for businesses operating on thin margins.

Why volume does not equal value

What started as a workaround is now scaling quickly. Some AI platforms are generating millions of new tracks daily, with many of these already appearing on major streaming services such as Spotify. The result is a surge of content that no human listener could realistically keep up with, yet one that still competes for attention, streams, and, in some cases, royalty payouts.

This shift has unsettled large parts of the music industry. Veteran songwriter and music producer Jonathan Manalo recently weighed in, warning that volume alone cannot replace authorship, intention, and identity. In a lengthy post reacting to the explosion of AI-generated songs, Manalo urged creators to be “decidedly different” and to ensure their creative fingerprint remains visible in their work, flaws included.

A changing creative economy 

Manalo stressed that AI, when used carelessly, risks stripping music of the grit and character that define an artist’s voice. While acknowledging the potential of AI as a tool, he established a clear ethical boundary around authorship. Claiming AI-generated output as original work, he said, erodes personal integrity and devalues the creative process. “AI isn’t the problem,” Manalo said. “The lack of transparency and respect for the craft is the real issue.”

His concern carries particular weight as AI tracks increasingly earn streams and listeners alongside human-made music. As more AI-generated songs circulate on streaming platforms, questions around authorship, disclosure, and royalties become harder to ignore. Music that once reflected lived experience and deliberate collaboration now competes with content produced at an industrial scale, blurring distinctions that listeners and platforms have long relied on.

A changing music scene, yet again

The broader sentiment across the industry shows those anxieties. Royalty pools face further dilution as volume increases. Authorship becomes harder to verify. Opportunities for emerging artists narrow as algorithms reward quantity and consistency over intent. Long-standing systems for discovering new talent, including songwriting competitions and curated releases, face pressure in a landscape dominated by speed and scale.

Public response remains mixed. In many commercial spaces, AI music functions as ambient sound, particularly instrumental or lo-fi tracks designed to fade into the background. Some listeners barely register it. Others notice artificial vocals, repetitive structures, and weaker production and see it as a downgrade. The difference often lies in whether music is meant to be experienced or simply to fill silence.

Practical solutions vs. long-term risks

From a business standpoint, the decision to adopt AI music is often practical. Operating costs are high, margins are thin, and compliance carries financial consequences. AI offers predictability where licensed music offers uncertainty. However, other parties bear the broader cost of that decision. Lost income for musicians, fewer commissions, and reduced demand for original compositions do not appear on a café or grocery’s balance sheet.

AI music is already altering how public spaces sound and how value circulates within the creative economy. As Manalo warned, the game is being changed again. Without clear standards around transparency and authorship, a short-term cost solution risks becoming a long-term shift that redefines who gets heard, who gets paid, and what originality means in an industry shaped by machines.

 

 

While AI offers a cheaper, low-risk alternative to licensed music, industry figures warn the shift comes with hidden consequences, including diluted royalties, weakened authorship, and fewer opportunities for human creators.

 

 

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