As Eros Innovation launches Eros Music Worlds, a cultural music platform featuring seven AI-native artists built from established Eros film characters and narrative worlds, industry experts say the commercial opportunity is significant.
However, the real value lies not in producing endless AI-generated music, but in creating rights-cleared, legally compliant content based on well-known voices and performances.
Music companies, experts say, must ensure AI systems are trained on lawfully licensed content and that artists' copyrights, performers' rights and personality rights are not infringed. Any use of an artist's voice, likeness or creative works must be backed by the necessary consents and licences.
Beyond remixes
“From a revenue perspective, AI-native artists give music companies a new way to monetise their existing catalogues. A song library is no longer limited to old recordings or remixes. With AI, companies can create newer versions, regional adaptations, digital performers, short-form content and fresh engagement around older IP,” said Sudhir Raja Ravindran, attorney-at-law, solicitor (England & Wales) at Altacit Global.
Aarushi Jain, partner (head–media, education and gaming), Cyril Amarchand Mangaldas, agreed that AI does not need to erode creativity but can instead enhance it. For instance, it can be used as an editing tool to speed up content creation and keep costs in check. AI tools can help both established and emerging artists generate music, opening new opportunities while enabling content creation at scale.
“AI-generated music is likely to divert investment away from certain categories of work, particularly where speed, scale and cost are commercial priorities. While it may reduce demand for some routine or volume-based work, human creativity, artistic expression and emotional connection remain irreplaceable,” said Alka Mehta, founding partner, Minara Legal.
Rights matter
That said, given the sheer volume of AI-generated songs already available across streaming platforms, simply increasing the number of AI-created tracks is unlikely to generate higher revenues.
“The real commercial value lies in how AI enables music companies to monetize and expand their intellectual property. This may include virtual performers, multilingual adaptation, licensing opportunities, brand collaborations, gaming integrations, short-video content, and even virtual concerts,” said Malabika Boruah, partner, Naik Naik & Co.
Pointing to legal concerns, Boruah said AI-generated output will have long-term commercial value only if the underlying training data, musical works and recordings are lawfully licensed and ownership of the resulting rights is clearly established.
When AI-generated music competes directly with human-made recordings on the same platforms, it creates a structural challenge, according to Rashna Pochkhanawala, founder of AI music company PaRa Music.
It occupies catalogue space, absorbs streaming revenue, and diverts investment that would otherwise go toward discovering and developing real talent. The flooding of streaming platforms with AI-generated music is a real and growing problem. It dilutes discovery, suppresses streaming revenue pools for legitimate artists, and erodes trust in music as an art form, she said.
“Session singers, background vocalists and jingle artists are likely to face the greatest disruption because AI can replicate precisely the kind of work that has traditionally provided them with regular employment. Secondly, artists will need to become much more conscious of the rights they license away. Having legal protection is one thing. Enforcing those rights is another,” said Arjit Benjamin, associate partner, Prosoll Law.
Well-established artists may have the resources to negotiate favourable licensing arrangements or pursue litigation where necessary, Benjamin said. Emerging artists often do not enjoy the same bargaining power.
Further, the benefits are unlikely to be distributed equally. Well-known artists with valuable catalogues stand to gain the most, while newcomers may find themselves competing not only against living performers but also against digitally recreated legends.
Human advantage
Even so, industry experts expect more companies to experiment with AI-native artists and AI-assisted music creation. As with every technological shift, early adoption is inevitable as businesses continue to seek new efficiencies and revenue opportunities.
Rohith Sobti, curator and founder of The Shakti Collective, an artist-first cultural house building a structured ecosystem for music, storytelling and cultural IP, said the long-term value of a music company will not be determined by the volume of content it owns but by the originality, emotional connection and cultural relevance of its catalogue.
AI can increase supply, he said, but it cannot replace lived experiences, artistic identity or the emotional depth that audiences connect with.
“The real question is not whether AI can produce millions of tracks. It already can. The question is whether listeners develop a relationship with those tracks. Historically, the biggest economic value in music has come from emotional connection, identity, and fandom—not abundance,” said Rohan Jain, founder of music-tech company Madverse.
“AI can create incremental revenue opportunities, but sustainable value will still depend on a company’s ability to build trust, storytelling, and audience affinity around the music,” Jain added.