Artificial intelligence in the music streaming value chain: Exploring artists' and users’ perceptions on content creation and algorithmic consumption

Artificial Intelligence (AI) plays a pivotal role throughout every stage of the music industry value chain. In fact, AI has been integral to the value proposition of music streaming platforms since their inception. This research article investigates how AI—and in particular, Generative AI (GenAI)—affects the creation and consumption stages, the two most socially significant components of the music streaming value chain. It explores users’ perceptions of the impact of AI/GenAI on their music-listening experience and examines how artists and performers view the role and influence of AI on their position and opportunities within the streaming model. Drawing on the findings from two separate focus groups with users and artists/performers from different geographies and professional development, this study complements industry debates—often dominated by technology companies and record and publishing firms—by providing valuable insights into the perceptions at both ends of the music industry value chain regarding the impact of these technologies on music creation, dissemination, and consumption. As key findings, while users exhibited a nuanced response to AI-generated music, both existing literature and insights from artists and performers suggest that AI may further amplify the endemic dysfunctions of music streaming platforms, arising governance issues and ethical concerns, particularly regarding to transparency. In addition, both groups highlighted a significant paradox: while AI has the potential to democratise music creation by lowering barriers to entry, it also poses a threat to the existing ecosystem of music professionals, which have relevant implications in terms of the role of culture in societies, policy and practice. • GenAI introduces significant changes to key aspects of music streaming access and consumption: a) the overload of music supply; b) new competition for artists and musicians, and shifting consumer perceptions; c) challenges in content discovery; d) the impact on music diversity. • Oversupply and competition within current distribution models are closely linked to growing challenges in content discovery. • Hyper-personalisation is perceived both as a convenience and as a potential threat. • The adoption of AI-generated content by streaming platforms could lead to a shift in revenue distribution, favouring technology companies over traditional artists and even rights holders. • The paper connects 4 key GenAI themes: blurred authorship, the creativity-efficiency tension, trust in platform curation, and income model uncertainty.