top of page
Writer's pictureMatthew St Onge

Michael Smith, AI Music, and the $10 Million Fraud: What You Need to Know



Hey, welcome back to AI DIY! Today, I’ve got a quick one for you, but it’s a juicy topic, so buckle up. We’re talking about Michael Smith, an actual musician, who allegedly found himself in deep trouble after being accused of fraud using AI-generated music. If you’ve been following my channel, you’ve probably seen my earlier video about how you can use AI to create music, post it to platforms like Spotify, and maybe make a little cash on the side. Well, Michael Smith allegedly took that idea and went way off the rails—$10 million off the rails, to be exact.

Let’s break it down.




Who is Michael Smith?


Michael Smith is a musician who—like a lot of us—posted his music online. But he didn’t just stop there. Since 2017, he’s accused of using AI-generated music and bots to manipulate streams on platforms like Spotify and Apple Music, allegedly raking in over $10 million in fraudulent royalties.



According to reports, he allegedly created hundreds of thousands of songs, then used automated programs (yep, bot farms) to stream them billions of times. And before you ask, yes, he allegedly knew exactly what he was doing. The FBI went through his emails and reportedly found plenty of evidence proving that this wasn’t some accidental loophole. It was a deliberate, well-thought-out fraud—or at least, that’s what the authorities are claiming.


AI Music Isn’t the Problem—Fraud Is


If you’re thinking, “Great, now everyone’s going to think AI music is illegal,” hold up. AI-generated music itself isn’t the issue here. Smith’s downfall was the alleged use of bot farms. He wasn’t making money because people loved his tracks; he was making money by allegedly tricking the system. Platforms like Spotify and Apple Music have clear terms of service, and artificially inflating your streams with bots is a big no-no.

Just to be clear, creating AI music and uploading it to streaming services is totally legal. Heck, I do it myself for fun and because I have creative ideas I want to put out there. If you’re into AI music like I am, don’t sweat it—just don’t use bots or break the rules.


Why This Matters


Now, here’s the kicker. Stories like this tend to send shockwaves through the industry, and you’ll likely hear people talking about how AI music is going to “destroy” the music business or how it’s all a scam. But let’s be real: AI is just a tool, like any other. If you use it for good, it’s an amazing creative outlet. If you use it for shady business—like allegedly setting up bot farms—well, you can see what happens. The important thing to remember is that this isn't a cautionary tale about AI itself. It’s about ethics and playing by the rules.

Platforms like Spotify and Apple Music are already embracing AI-generated content. They’re not out here trying to shut it down; they’re just trying to keep things fair. So, no, AI music isn’t going anywhere, but this case highlights the risks when creators step outside the lines. It’s not the technology’s fault—it’s how you use it. The future of music is wide open, and AI is going to be a huge part of that, but it’s going to require responsibility from creators like you and me.


What This Means for AI Creators


If you’re like me, you’re using AI tools to explore your creativity, to push the boundaries of what’s possible, and maybe even have a bit of fun along the way. That’s the joy of it. AI allows us to create music that we never thought possible, and the opportunities are endless. But, like anything else, there are right and wrong ways to go about it. Michael Smith allegedly went the wrong way, and he’s paying the price. That doesn’t mean everyone creating AI music is a fraud—it just means we need to be smart and honest about how we use these tools.

I’ve always said this on my channel: creating AI music should be about the passion and creativity, not about tricking the system for a quick buck. Sure, it might be tempting to automate your streams with bots and rake in some fast cash, but that’s not what we’re here for. We’re here to innovate, to push the envelope, and to have fun. Keep that in mind, and you’ll be on the right track.


A Quick Ask


Before I wrap this up, just a little request from me to you. If you like this content, hit that subscribe button on my Youtube channel. Once I’m monetized, I’ll be able to reinvest into the channel and even pick up some premium AI tools (no more relying on free versions!). And if you’ve got a little extra time, check out LoveHeHeart.org. I’m working to raise $38,800 to fund a bus for the John Foster Foundation to deliver life-changing services to remote villages in Indonesia. It’s a great cause, and every bit helps.

Thanks for sticking around. Whether you’re a regular or just dropped by, I appreciate you watching. I’m close to hitting that 600-subscriber mark, and it’s going to be a party when that happens! Until then, stay creative, stay legal, and I’ll catch you in the next one.

3 views0 comments

Comments


bottom of page