Warner Music Group CEO Robert Kyncl has laid out his company’s three “non-negotiable principles” for AI partnerships, in a pointed message arriving just hours after WMG struck two key AI deals.
In a blog post published late Wednesday (November 19), Kyncl outlined WMG’s approach to generative AI partnerships, emphasizing that the major label will only work with companies that commit to licensed models, properly value music economically, and give artists control over the use of their name, image, likeness, and voice.
The timing of Kyncl’s message is particularly significant.
It arrived the same day that WMG announced two major AI partnerships – settling its lawsuit with Udio, while striking a licensing deal for a new AI platform coming in 2026, and partnering with Stability AI to develop “responsible AI tools for music creation.”
Additionally, Bloomberg reported on Wednesday that AI music startup Klay has become the first music AI service to reach a deal with all three major record labels – Universal Music Group, Sony Music and Warner Music Group.
Suno, meanwhile, which faces ongoing copyright infringement lawsuits from major labels, as well as Denmark’s Koda and Germany’s GEMA, has recently raised $250 million at a $2.45 billion valuation and is generating $200 million in annual revenue, all without securing licensing deals from the major music companies.
Kyncl’s post also follows a recent AI strategy update from Universal Music Group CEO Sir Lucian Grainge, whose company has similarly inked deals with both Stability AI and Udio while settling its lawsuit with the latter startup.
“This is the moment to shape the business models, set the guardrails, and pioneer the future for the benefit of our artists and songwriters,” Kyncl wrote in his blog post, framing AI’s current phase as a critical juncture for the music industry.
Kyncl outlined three “non-negotiable principles” that guide every AI deal WMG makes:
- “We will only make agreements with partners who commit to licensed models;
- “The economic terms must properly reflect the value of music;
- “And, most importantly, artists and songwriters will have a choice to opt-in to any use of their name, image, likeness, or voice in new AI-generated songs.”
“We’re approaching this new era with one priority above all else: protecting and empowering the artists and songwriters who are our reason for being,” Kyncl stated.
Drawing parallels to the advent of the streaming era, Kyncl argued that the democratization of music distribution, which “many predicted would lead to the demise of our industry,” instead led to “unprecedented” growth.
He sees AI as ushering in “the next phase of innovation: the democratization of music creation.”
The WMG chief believes authentic talent will become even more valuable in an AI-saturated market, arguing that “in a sea of AI-generated content, real artistry, identity, and vision will define stronger artistic brands.”
He also pointed to historical lessons from the file-sharing era and the film and TV industries’ delayed embrace of streaming, warning: “Delaying only lets others define our future.”
Kyncl summarized WMG’s AI strategy with three words: “legislate, litigate, license.”
“We lobby for legislation that sets clear guidelines. We deploy litigation to halt bad actors. And we use licensing as the most powerful way to shape the future,” he explained.
“This space is moving lightning fast. Past lessons teach us that delaying only lets others define our future.”
Robert Kyncl
The litigation component of this strategy is already evident in WMG’s ongoing lawsuit against unlicensed Suno (alongside Universal Music Group and Sony Music), filed in June 2024, alleging copyright infringement on a massive scale.
Kyncl emphasized that licensing partnerships will ensure artists and songwriters “share in every dollar that’s earned” and that “as the services grow their revenue, so will the payouts.”
“This space is moving lightning fast,” Kyncl acknowledged, arguing that the music industry needs to be “a leading force in the formative stages of AI, not a passive participant.”
You can read the blog post in full below:
AI is still in its early days. Investment is surging, talent is pouring in, and a crop of new, ambitious startups are working with music again for the first time in more than a decade. This is the moment to shape the business models, set the guardrails, and pioneer the future for the benefit of our artists and songwriters.
We’re approaching this new era with one priority above all else: protecting and empowering the artists and songwriters who are our reason for being. Every decision we make, every partnership we forge, every principle we establish is designed to ensure that they benefit from AI’s possibilities.
Every AI deal we make is guided by three non-negotiable principles:
- We will only make agreements with partners who commit to licensed models;
- The economic terms must properly reflect the value of music;
- And, most importantly, artists and songwriters will have a choice to opt-in to any use of their name, image, likeness, or voice in new AI-generated songs.
WHY THIS MOMENT MATTERS
Over the last 25 years, we’ve experienced the democratization of music distribution. Many predicted it would lead to the demise of our industry, but the skeptics were proven wrong.
The barriers to entry have fallen, the world has gotten smaller, and artists are global from day one. Fans love having unlimited personalized access, streaming is driving unprecedented growth, and music is more valuable than ever.
Now, we are entering the next phase of innovation. The democratization of music creation.
We believe Generative AI will lead to a new explosion in creative and commercial opportunities, and that authentic talent will be even more in demand for two reasons:
- In a sea of AI-generated content, real artistry, identity, and vision will define stronger artistic brands.
- The ability for fans to utilize AI will unlock even greater value. As history shows, the more interactivity users have with the music they love, the more value is created.
OUR APPROACH
Our approach is clear: legislate, litigate, license. We lobby for legislation that sets clear guidelines. We deploy litigation to halt bad actors. And we use licensing as the most powerful way to shape the future. Licensing is how we can safeguard our artists and songwriters, while collaborating with tech partners, to propel new fan experiences that drive additional revenue.
The partnerships we forge will offer a variety of specific use cases. Each of them adheres to our principles, winning important protections for artists and songwriters, while ensuring that they share in every dollar that’s earned. And as the services grow their revenue, so will the pay outs.
This space is moving lightning fast. Past lessons teach us that delaying only lets others define our future. The music business learned that during the file-sharing era. And the film & TV industries are still regretting not embracing streaming sooner. So for artists and songwriters to win, the music industry needs to be a leading force in the formative stages of AI, not a passive participant. We will steer the course in this new era to deliver greater value for our artists, songwriters, and their music.
This is only the beginning.Music Business Worldwide
