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Musician Sent to Prison for $10 Million Streaming Fraud Using AI Bots
Smith used AI-generated songs and bots to stream tracks billions of times and steal more than $8 million in royalties, prosecutors said.
On Tuesday, a Manhattan federal judge sentenced North Carolina resident Michael Smith to 18 months in prison for streaming fraud, marking the first criminal conviction in the case.
Between 2017 and 2024, Smith used thousands of fake accounts and AI-generated songs to manipulate streaming platforms, fraudulently obtaining more than $8 million in royalty payments.
In April 2023, Smith's bots generated 80.9 million streams for his AI music on YouTube Music, while Taylor Swift's entire catalog received 9.3 million streams that same month.
Judge John G. Koeltl ordered Smith to forfeit $8.09 million, while the Recording Industry Association of America said "streaming fraud harms creators and deceives fans."
The IFPI warned that generative AI makes large-scale fraud faster and cheaper, as streaming platforms now face distinguishing legitimate AI-assisted music from artificial audiences.
A US musician has come across millions of AI-generated songs. At times, his songs have been retrieved more frequently than Taylor Swift's, but only by Bots. Now the verdict was against the man.