The AI tech company aims to “help further evolve music experiences for fans... while fully respecting the rights of artists, songwriters, and rightsholders”
By Surej Singh 21st November 2025
A photo illustration of the Sony logo, in front of "AI" inscriptions. Credit: Avishek Das/SOPA Images/LightRocket via Getty Images
Major record labels have signed licensing deals with AI music company Klay – find out more below.
- READ MORE: Beyond human imagination: How AI is pushing the boundaries of entertainment
Per a Pitchfork report, major labels Sony Music Entertainment, Warner Music Group and Universal Music Group have all signed licensing deals with AI music technology startup Klay. This makes the company the first AI music brand to sign with all three major labels.
AdvertisementAccording to Music Business Worldwide, the newly signed agreements “establish terms on which Klay will help further evolve music experiences for fans, leveraging the potential of AI, while fully respecting the rights of artists, songwriters, and rightsholders”.
Klay claims it is working on developing an AI music platform that will “reimagine listening with immersive, interactive tools,” powered by the company’s Large Music Model technology, which is reportedly “trained entirely on licensed music.”
The AI music startup also claims that it “is not a prompt-based meme generation engine,” but instead operates as a “new subscription product that will uplift great artists and celebrate their craft” and seeks to “enhance human creativity” rather than replace it.
The company is reportedly looking to expand its technology to include independent labels, musicians, publishers and songwriters in the near future.
Carlette Higginson, EVP and Chief Digital Officer at Warner Music Group said in a statement: “Our goal is always to support and elevate the creativity of our artists and songwriters, while fiercely protecting their rights and works. From day one, Klay has taken the right approach to the rapidly-evolving AI universe by creating a holistic platform that both expands artistic possibilities and preserves the value of music. We appreciate the Klay team’s work in advancing this technology and guiding these important agreements.”
RecommendedSony Music Entertainment’s President of Global Digital Business Dennis Kooker added: “We are pleased to partner with Klay Vision to collaborate on new generative AI products. While this is a beginning, we want to work with companies that understand that proper licenses are needed from rightsholders to build next-generation AI music experiences.”
Last week, it was reported that a new study found that 97 per cent of people “can’t tell the difference” between real and AI music. A “first-of-its-kind” survey asked around 9,000 people from eight different countries around the world, to listen to three tracks to determine which was fully AI-generated.
According to the report, 97 per cent of those respondents “failed”, with over half (52 per cent) saying they felt “uncomfortable” to not know the difference. The study also found that 55 per cent of respondents were “curious” about AI-generated music, and 66 per cent said they would listen to it at least once, out of curiosity.
However, only 19 per cent said they felt that they could trust AI, while another 51 per cent said they believe the use of AI in music production could lead to low-quality and “generic” sounding music.
AdvertisementThe stats come during a period of continued controversy for AI technology in the music industry, with a recent study sharing the stark warning that people working in music are likely to lose a quarter of their income to Artificial Intelligence over the next four years.
In September, Spotify confirmed that it was cracking down on AI by removing 75million “spammy tracks” and targeting impersonators. This followed a report claiming that AI-generated songs were being uploaded to dead musicians’ Spotify profiles without permission.
Last week, Paul McCartney, Sam Fender, and Kate Bush contributed silent tracks to a new album designed to protest AI.
