Citigroup Highlights AI Potential for Music with Beatles Track
Citigroup Inc. analysts suggest that the creation of a new Beatles track through the use of artificial intelligence demonstrates that technology can offer opportunities, rather than just risks, for companies such as Universal Music Group NV.
Singer Paul McCartney told the BBC this week that artificial intelligence had been used to “extract” John Lennon’s voice from an old demo so he could finish the “definitive” Beatles song. The development suggests that record companies may mine historical master recordings for new content, analyst Thomas A Singlehurst wrote in a note to clients.
The tools “will help legacy music recording companies by allowing them to ‘sweat’ historical assets harder,” he added.
Citi expects AI’s risk-reward to be “fairly balanced” and has a neutral UMG rating. Bloomberg News has reached out to UMG for comment.
AI-generated music has been criticized by some in the industry, who say artists and rights owners could be denied compensation if bots use their songs to generate content. Universal, the record label of Taylor Swift and The Weeknd, has said that training generative artificial intelligence with the music of its artists violates its contracts and violates copyright law.
Earlier this year, a song called “Heart on My Sleeve,” created by an unknown TikTok user with an AI-generated vocal from Drake and The Weeknd, went viral after it was uploaded to streaming services. Country singer-songwriter Chris Stapleton has called on lawmakers to prevent artificial intelligence from impersonating music artists.
But while AI threatens to increase the amount of music available to consumers, the Beatles development adds another dimension to the debate, according to Citi’s Singlehurst.
“It highlights that the debate about the risks/opportunities of AI in music is more nuanced than the ‘loser vs. winner’ basket debate might suggest,” he added.
UMG shares fell 0.2% to 20.04 euros at 13:57. in Amsterdam. Citigroup’s price target of EUR 23.50 means a 17% increase for the stock from the current level.
