Spotify has entered a licensing agreement with Universal Music Group (UMG) to enable users to create AI-generated covers and remixes of songs from UMG artists. This new feature will be available as a paid add-on for Spotify Premium subscribers, marking a significant step in the integration of artificial intelligence in music creation. The deal encompasses both recorded music and music publishing rights, allowing Spotify to launch a generative AI tool that facilitates fan-made tracks. Importantly, the agreement ensures that original artists and songwriters will receive a share of the revenue generated from these AI-created works. Spotify Co-CEO Alex Norström stated that the initiative is rooted in principles of 'consent, credit, and compensation' for creators, while UMG Chairman and CEO Sir Lucian Grainge described the project as a way to deepen fan engagement and create new revenue streams for artists. Although the specific UMG artists participating in this initiative have not been disclosed, the announcement was made during Spotify's Investor Day, where the company also introduced other AI-driven tools for audiobooks and podcasting. Details regarding pricing and the launch date for the AI remix feature remain unannounced.