Michael Smith, a 54-year-old man from North Carolina, was sentenced to 18 months in prison for using artificial intelligence to generate songs and defraud music streaming platforms. The U.S. Department of Justice said Smith is the first American criminally charged with AI-assisted streaming fraud.
According to the DOJ, Smith created hundreds of thousands of AI-generated songs and dispersed billions of automated streams to avoid detection. In April 2023, his fake songs were streamed 80.9 million times, surpassing Taylor Swift’s entire catalog of 9.3 million streams during the same period.
Smith’s scheme involved fake email accounts and fraudulently obtained debit cards to create thousands of fraudulent accounts on platforms like Spotify and Apple Music. He used bots to stream songs continuously, making it appear as though the songs were being played by real users.
"For years, Smith orchestrated a sophisticated fraudulent scheme that stole millions of dollars in musical royalties from rights holders," the DOJ said. The Court should impose a sentence that adequately punishes the defendant for his fraud scheme and sends a message to others that streaming fraud will be met with significant punishment.
Smith’s legal team argued that the DOJ was making an example of him, noting that he did not actually pocket $8 million. They suggested a probation sentence would allow him to repay the forfeiture sooner, as he had been offered a job paying $5,000 per month.
The DOJ disagreed, emphasizing the need for a strong sentence to deter others from engaging in similar fraudulent activities. Smith’s case highlights the growing risks of AI misuse in the music industry.
Source: arstechnica
