American sentenced for AI-driven music streaming fraud and ordered to repay royalties

U.S. authorities sentenced Michael Smith, 54, to a term behind bars and ordered him to repay the royalties he illicitly obtained through an elaborate fraud. Smith had produced a large catalogue of AI-generated music and posted it on major streaming services, then used a multitude of fabricated user accounts to play the tracks continuously, inflating royalty counts. The scheme siphoned earnings that should have gone to real artists, prompting the district attorney to describe the abuse as a misuse of "superintelligence."

In court, the prosecutor highlighted the case as an example of the need to protect the integrity of digital music markets. Smith's sentencing underscores growing legal scrutiny of AI-enabled fraud in the entertainment industry.