US man pleads guilty to defrauding music streamers out of millions using AI

Michael Smith, a 52-year-old North Carolina man, pleaded guilty to defrauding music streaming platforms and musicians out of millions in royalties by uploading thousands of AI-generated songs and using automated bots to artificially inflate play counts into the billions. The scheme exploited streaming services' royalty systems, which pay artists based on the number of listens their songs receive, allowing Smith to siphon payouts meant for legitimate creators. The case represents one of the first major prosecutions targeting AI-generated music fraud on a significant scale, highlighting how artificial intelligence can be weaponized to manipulate digital marketplaces. Smith reached a plea deal with federal prosecutors in New York's Southern District, though specific sentencing details were not disclosed in the available information. The guilty plea underscores growing concerns about AI-generated content flooding streaming platforms and the vulnerability of royalty-distribution systems to coordinated fraud.