How AI is Creating a Wave of Innovation and Entrepreneurship That’s Reshaping the Music Industry (Guest Column)
We are in a transformative era of music technology.
The music industry will continue to experience growth throughout the decade, with total music revenue reaching approximately $131 billion by 2030, according to Goldman Sachs. This lucrative business is built on streaming but also witnessing an unprecedented surge in innovation and entrepreneurship in artificial intelligence. With over 300,000 tech and media professionals laid off since the beginning of 2023, according to TechCrunch, a new wave of talent has been funneled into music tech startups. This influx, coupled with the dramatic decrease in cloud storage costs and the global rise of developer talent, has catalyzed the emergence of many startups (over 400 that we have tracked) dedicated to redefining the music business through AI.
These music tech startups are not just changing the way music is made and released; they are reshaping the very fabric of the industry. They’re well-funded, too. After raising over $4.8 billion in 2022, music tech startups and companies raised almost $10 billion in funding in 2023, according to Digital Music News, indicating that venture capitalists and investors are highly optimistic about the future growth of music technology.
As Matt Cartmell, CEO of Music Technology UK, said, “Our members want us to present the music tech sector as a highly investible proposition, educating investors about the opportunities that lie within. Music tech firms are also looking for innovative models of engagement with labels, DSPs and artists, as well as looking for our help to bring diverse talent into the industry, removing the barriers that continue to restrict individuals with passion and enthusiasm from a career in music technology.”
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Riding this wave of investment, several startups have already made a splash in the music AI space. Below is an overview of a few of those companies and how they’re contributing to the industry’s rapid evolution.
Generative AI: The New Frontier
At the heart of this revolution is generative AI, a technology rapidly becoming indispensable for creators across the spectrum. From novices to professional artists and producers, AI-powered platforms offer unprecedented musical expression and innovation opportunities. It’s now possible for users without any formal musical training to craft songs in many genres, effectively democratizing music production. Music fans or content creators can utilize products that score their social content, while seasoned musicians can use these tools to enhance their creative workflows.
“I like to think of generative AI as a new wave of musical instruments,” says Dr. Maya Ackerman, founder of Wave AI, a company that has introduced tools to aid human songwriters. “The most useful AI tools for artists are those that the musicians can ‘play,’ meaning that the musician is in full control, using the AI to aid in their self-expression rather than be hindered.” These tools focus on generating vocal melodies, chords and lyrics, emphasizing collaboration with musicians rather than replacing them.
For non-professionals, one ambitious company, Beatoven.ai, is building a product to generate music in a host of different ways for many different use cases. “(Users) can get a piece of music generated and customize it as per their content without much knowledge of music,” says Siddharth Bhardwaj, co-founder/CTO of Beatoven. “Going forward, we are working on capturing their intent in the form of multimodal input (text, video, images and audio) and getting them as close to their requirements as possible.”
The concept of “artist as an avatar” has become increasingly popular, which draws inspiration from the gaming community. Companies like CreateSafe, the startup powering Grimes’ elf.tech, have built generative audio models that enable anyone to either license the voice of a well-known artist or replicate their own voice. This innovative approach also reflects the adaptive and forward-thinking nature of artists. Established artists like deadmau5, Richie Hawtin and Ólafur Arnalds have also delved into AI initiatives and investments. Furthermore, a few innovators are crafting AI music tools tailored for the gaming community, potentially paving the way for the fusion of music and gaming through real-time personalization and adaptive soundtracks during gameplay.
The Community and Collaboration Ecosystem
The journey of music creation is often fraught with challenges, including tedious workflows and a sense of isolation. Recognizing this, several startups are focusing on building communities around music creation and feedback. The Singapore-based music tech giant BandLab recently announced that it has acquired a user base of 100 million, making it one of the biggest success stories in this arena. “Our strength lies in our comprehensive approach to our audience’s needs. From the moment of inspiration to distribution, our platform is designed to be a complete toolkit for music creators and their journey,” says founder Meng Ro Kuok. There are several startups pioneering spaces where creators can collaborate, share insights and support each other, heralding a new era of collective creativity.
A Toolkit for Every Aspect of Music Production
This landscape of music tech startups offers a comprehensive toolkit that caters to every facet of the music creation process:
Track and Stem Organization. Platforms like Audioshake simplify the management of tracks and stems, streamlining the production process.
Vocal & Instrument Addition. These technologies allow for the addition of any human voice or instrument sound to a recording environment, expanding the possibilities for frictionless creativity.
Sound Libraries. Services provide or generate extensive libraries of samples, beats and sounds, offering artists a rich palette.
Mix and Master. The process of mixing and mastering audio has historically relied heavily on human involvement. However, several startups are utilizing AI technology to automate these services for a more comprehensive audio production experience. Others also offer the ability to convert stereo songs to spatial audio.
Remixing and Freelance Musicianship. Many platforms now offer creative and innovative solutions for remixing music. Additionally, some platforms allow users to easily source and connect with talented artists, session musicians and other music professionals. Need an orchestra? There are tech platforms that can arrange and source one for you remotely.
The Future of Music Tech: A Vision of Inclusivity and Innovation
The barriers that once kept people from participating in music creation are falling away. Now, anyone with a passion for sound can create content, engage with fans, find a community and even monetize their work. This more accessible and collaborative music ecosystem offers an exciting glimpse into a future where anyone can participate in the art of creation. The explosion of creators, facilitated by these technologies, also suggests a new economic opportunity for the industry to service this growing creator class.
Drew Thurlow is the founder of Opening Ceremony Media where he advises music and music tech companies. Previously he was senior vp of A&R at Sony Music, and director of artists partnerships & industry relations at Pandora. His first book, about music & AI, will be released by Routledge in early 2026.
Rufy Anam Ghazi is a seasoned music business professional with over eight years of experience in product development, data analysis, research, business strategy, and partnerships. Known for her data-driven decision-making and innovative approach, she has successfully led product development, market analysis, and strategic growth initiatives, fostering strong industry relationships.
