The music industry is facing an unprecedented threat that’s siphoning billions of dollars from legitimate artists’ pockets becuase of AI music and bots. Artificial Intelligence, the same technology promising to revolutionize music creation, has become a weapon in the hands of fraudsters who are gaming streaming platforms with sophisticated bot networks and AI-generated songs.
The $10 Million Wake-Up Call
In September 2024, the music industry received a shocking reality check when federal prosecutors charged North Carolina musician Michael Smith with what they called the first criminal case involving artificially inflated music streaming. Smith’s scheme was audacious in its scope: hundreds of thousands of songs created with artificial intelligence and automated programs called “bots” to stream the AI-generated songs billions of times, netting him over $10 million in fraudulent royalties.
The numbers are staggering. At his operation’s peak, Smith allegedly employed over 1,000 bot accounts to artificially boost streams across various platforms, generating approximately 661,440 streams per day, yielding annual royalties of $1,207,128. By 2024, he boasted that his scheme had generated “over 4 billion streams and $12 million in royalties since 2019”.
How AI Changed the Fraud Game
Traditional streaming fraud was relatively easy to detect. Bad actors would upload a few songs and have bots play them millions of times, creating obvious red flags. But AI has fundamentally changed this landscape.
AI has flipped the paradigm on its head. Now, fraudsters use AI song generators to flood streaming platforms with millions of fake songs and stream each one just a few thousand times – enough to generate royalties from each track but not enough to arouse suspicion and detection.
This new approach is devastatingly effective. Deezer estimates that 18 percent of the content uploaded to the platform every day is AI-generated, and much of this content exists solely to be artificially streamed by bot networks.
The sophistication doesn’t stop at content creation. Bad actors are using AI not only to generate audio content but also to create and manage the bots used to stream the content. Some companies even boldly advertise streaming fraud as a service, highlighting their use of AI to spoof digital identities en masse and “bypass anti-fraud systems”.
The Real Cost to Artists
While fraudsters pocket millions, legitimate artists bear the financial burden. Streaming platforms operate on a finite royalty pool, meaning every time a bad actor successfully extracts fraudulent payments, there is less revenue to share with artists, labels and publishers.
The problem is massive in scale. Streaming fraud costs the global music industry $2 billion a year, money that should be flowing to hardworking musicians, songwriters, and other rights holders.
Beyond financial losses, artificial streaming undermines the entire ecosystem that allows artists to build authentic careers. Artificial streaming undermines the fair playing field that digital streaming services offer to artists, distorting charts, recommendation algorithms, and discovery mechanisms that genuine artists rely on to reach new audiences.
Warning Signs: How to Spot Artificial Streaming
As an artist or music fan, recognizing the signs of artificial streaming can help protect both your music and the industry as a whole. Here are key red flags to watch for:
Suspicious Playlist Activity:
- Playlists with generic names and AI-generated artwork
- High follower counts but disproportionately low engagement
- Playlists that add your music without permission
- Sudden, unexplained spikes in streams coinciding with playlist additions
Unrealistic Promotional Offers: You’ve seen a company selling 1,000 ‘Real Spotify Plays’ for $6. How likely is it that there are really 1,000 actual humans ready and waiting to listen to your music in exchange for less than a cent per stream?
Bot-like Streaming Patterns:
- Consistent, mechanical streaming patterns (24/7 activity)
- Geographic anomalies (streams from unexpected regions)
- Streams without corresponding social media engagement or fan interaction
How to Protect Yourself
1. Avoid Dubious Promotional Services
The most important protection is education. Any third-party service or promotion company that promises playlist placement, pitching, streams, or followers in return for money is likely engaging in streaming fraud or artificial activity.
Legitimate music promotion cannot guarantee specific stream counts. Be especially wary of:
- Services offering guaranteed streaming numbers
- Extremely cheap promotional packages
- Companies that emphasize how little they use bots (if they mention bots at all, that’s a red flag)
2. Monitor Your Analytics Carefully
Regular monitoring of your streaming analytics can help you spot artificial activity early. Look for:
- Sudden, unexplained spikes in streaming activity
- Unusual geographic distribution of listeners
- Streams without corresponding engagement metrics
If you think one of your tracks is being artificially streamed, the worst thing you can do is sweep it under the rug and ignore it. Those telltale signs of artificial streaming you’ve spotted will have been picked up by the streaming platform too – and they won’t be ignoring it.
3. Use Available Detection Tools
Several tools can help you identify potentially fraudulent playlist activity:
- Artist.tools Bot Checker: A tool for checking if a playlist you’re in is botted: https://www.artist.tools/bot-checker
- Chartmetric.com: Tracks follower trends and Spotify stream counts for playlists
- Spotify for Artists Playlist Reporter: If you would like to report a suspicious playlist to Spotify, please visit https://artists.spotify.com/c/playlist-reporter
4. Report Suspicious Activity
If you discover your music on a suspicious playlist or notice signs of artificial streaming, take immediate action:
- Document the evidence – Screenshot suspicious playlists, unusual analytics, or promotional offers
- Report to streaming platforms – Use official reporting channels like Spotify for Artists
- Contact your distributor – Services like DistroKid, CD Baby, and others have anti-fraud teams
- Report to industry organizations – Groups like the Music Fights Fraud Alliance work to combat streaming fraud
5. Build Authentic Engagement
The best defense against artificial streaming is building genuine fan engagement:
- Focus on organic growth strategies
- Engage authentically with your audience on social media
- Collaborate with reputable playlist curators and music bloggers
- Invest in legitimate marketing and PR services with proven track records
Industry Response and Future Outlook
The music industry isn’t standing idle. In 2023, major players formed the Music Fights Fraud Alliance (MFFA), a global task force aimed at eradicating streaming fraud, founded in the summer of 2023. The group includes giants like Downtown, CD Baby, United Masters, FUGA, TuneCore, Spotify, Amazon Music, SoundCloud, and others.
Streaming platforms are also implementing new technologies and policies:
Detection Technology: Deezer has introduced a new artist-centric remuneration model with an innovative approach to combating streaming fraud. When calculating royalty payments, Deezer caps its users at 1,000 streams – if a single user surpasses this limit, they are still able to listen to music but generate royalties at a much lower rate.
AI-Powered Defense: Just as fraudsters use AI to commit crimes, legitimate companies are deploying AI-driven fraud detection systems to identify and prevent artificial streaming in real-time.
Legal Consequences: The Michael Smith case demonstrates that authorities are taking streaming fraud seriously. Smith is facing up to 20 years in prison on each of three charges: wire fraud conspiracy, wire fraud, and money laundering conspiracy.
The Path Forward
The battle against AI-powered streaming fraud represents a larger struggle for the soul of the music industry. As AI-generated music and fraud detection are locked in a technological arms race, the future of streaming remains uncertain.
However, the industry’s response shows promise. Through collaboration between platforms, distributors, artists, and law enforcement, we’re seeing unprecedented coordination in fighting fraud. New technologies like tamper-proof watermarking technologies that would tag whether a track was made by a human, AI, or a combination of both could provide additional protection layers.
Conclusion: Your Role in the Fight
Every artist, music fan, and industry professional has a role to play in combating streaming fraud. By staying educated about the threats, using available tools to monitor for suspicious activity, and reporting fraud when discovered, we can help protect the integrity of the music ecosystem.
The stakes couldn’t be higher. Streaming fraud robs hard-working musicians of their time, money, and effort—even their careers. But with vigilance, education, and collective action, we can ensure that the streaming economy continues to provide opportunities for legitimate artists to make a living from their art.
Remember: if an offer sounds too good to be true—especially when it comes to guaranteed streams or playlist placement—it probably is. The most sustainable path to success in music remains the same as it always has been: creating great music, building authentic connections with fans, and growing your audience organically.
The technology may have changed, but the fundamental truth remains: there are no shortcuts to building a real music career. By staying informed and making ethical choices, you’re not just protecting yourself—you’re helping to preserve the future of music for all artists.
