The American Federation of Musicians (AFM) has launched a federal lawsuit against music giants Universal Music Group (UMG) and Warner Music Group (WMG). The union alleges that the labels have improperly licensed music featuring their members to artificial intelligence (AI) music generation platforms without adequate compensation or disclosure to the artists.
Key Takeaways
- The AFM is suing UMG and WMG for allegedly violating collective bargaining agreements.
- The lawsuit centres on licensing deals with AI music generators Suno and Udio.
- Musicians claim they have not been compensated for the use of their work in AI training.
- The union seeks unspecified damages and disclosure of recordings used in AI training.
The Core Grievance
The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses UMG and WMG of failing to share settlement proceeds and future revenue with the artists whose music was used to train AI models. The AFM contends that these licensing deals with Suno and Udio triggered the "new uses" provision of their collective bargaining agreement, which mandates payment to musicians when their work is applied to new commercial purposes.
Label Settlements Under Scrutiny
UMG settled with Udio in late October 2025, followed by WMG's deals with Udio and Suno in November 2025. The AFM argues that while these agreements protected the labels' financial interests and created new revenue streams, the musicians whose talent and labour contributed to the recordings were excluded from these benefits.
Labels' Response
Both UMG and WMG have pushed back against the lawsuit. A UMG spokesperson stated the company is committed to protecting artists' rights in the AI era and suggested the AFM chose litigation during ongoing collective bargaining negotiations. WMG described the lawsuit as "unproductive" and expressed a desire to resume negotiations, framing their AI deals as efforts to build a healthy AI ecosystem for artists.
Broader AI Debate
This legal action adds another layer to the ongoing debate surrounding generative AI in the music industry. Concerns persist among musicians' organisations and advocates about fair compensation for artists whose work is used to train new technologies. The filing comes shortly after Suno announced a significant funding round, underscoring the rapid growth and investment in AI music technology.