Michael Smith has been sentenced to 18 months in prison for orchestrating a scheme that used AI-generated songs and bot accounts to fraudulently generate streaming royalties. US District Judge John G. Koeltl handed down the sentence and ordered Smith to forfeit $8,091,843.64, the loss amount both prosecutors and the defense agreed upon.
The case centered on Smith’s use of artificial intelligence to mass-produce tracks, which were then streamed by automated bots to siphon royalty payments from streaming platforms. The sentencing marks one of the first major criminal cases targeting AI-enabled streaming fraud, a growing concern for labels, distributors and platforms as generative music tools become more accessible.
Read the full story at Music Business Worldwide.