Google $GOOGL ( ▲ 0.43% ) is bringing AI generated music to the masses, rolling out a feature in its Gemini app that lets users create 30 second songs on demand using its Lyria 3 model. The tool is available globally for adults and can produce tracks inspired by prompts, even mimicking the style or mood of well known artists without directly copying them.
Investors immediately worried about the implications for the traditional music business.
Wall Street hears disruption, not innovation
Shares of major record labels slid after the announcement, including Universal Music Group $UNVGY ( ▼ 2.17% ) and Warner Music $WMG ( ▼ 0.24% ) , while Sony $SONY ( ▼ 1.4% ) also dipped. Spotify $SPOT ( ▲ 3.19% ) briefly fell before recovering, suggesting streaming platforms may be less directly threatened than content owners.
Google says safeguards are in place to avoid copyright violations, but acknowledged the system is not foolproof and relies on user reporting for problematic outputs.
Gen Z is already living in the AI music future
The timing underscores a broader shift in listening habits. A recent survey found that up to 60 percent of Gen Z consumers already listen to AI generated music, averaging several hours per week. That trend raises uncomfortable questions about whether human made music could lose share over time.
Some platforms are pushing back. Bandcamp recently banned fully AI generated tracks, highlighting a growing divide between tech driven creation and traditional artist ecosystems.