AI Songs Outstreamed Taylor Swift, But No One Was Listening
An AI bot-powered music scheme generated billions of fake plays and more than $8 million.
A North Carolina man, Michael Smith, has been sentenced to 18 months in prison for orchestrating one of the largest music-streaming fraud schemes using artificial intelligence and thousands of automated accounts. The fraud generated over $8 million in royalties from songs that were never actually heard by real listeners. This marks the Justice Department's first criminal prosecution for fraud involving AI-assisted music streaming.
Smith's streaming scheme operated from 2017 to 2024, relying on three components, generating 80.9 million streams in April 2023 alone. Streaming services like Spotify, Apple Music, Amazon Music, and YouTube Music distribute royalties based on the frequency of song streams. When fraudulent streams occur, they deprive genuine musicians and songwriters of their rightful earnings.
In response to the Smith case, streaming companies have intensified their efforts to combat AI-generated content. Apple Music removed approximately 2 billion fraudulent streams in 2025, saving around $17 million in royalties intended for deserving artists. YouTube now requires creators to disclose when videos have been generated or altered using artificial intelligence.
The International Federation of the Phonographic Industry has launched the Streaming Integrity Initiative to verify customer identities, screen content for AI risks, and combat fraudulent streaming activity.
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