A United States resident has admitted to running a large-scale scheme that used artificial intelligence to manipulate music streaming platforms and illegally earn millions in royalties meant for genuine artists.
The 52-year-old, Michael Smith, pleaded guilty to conspiracy to commit wire fraud after investigators revealed he created thousands of AI-generated songs and deployed automated bots to repeatedly stream them, inflating play counts into the billions.
Authorities say the operation diverted significant earnings away from real musicians, with the fraudulent streams generating over $10 million in royalties over several years. The case is being described as one of the first major prosecutions involving the misuse of AI in the music industry.
Under the terms of his plea deal with federal prosecutors, Smith faces up to five years in prison and is expected to forfeit more than $8 million.
Officials say the conviction underscores growing efforts to clamp down on emerging forms of digital and AI-driven financial crime.
About the Author
