Photo credits: Luca Luperto
The American Federation of Musicians (AFM) has filed a lawsuit against Universal Music Group (UMG) and Warner Music Group (WMG), alleging that the major labels violated their collective bargaining agreement regarding the use of music by AI companies.
Filed on Friday, June 5, the lawsuit claims that UMG and WMG have licensed sound recordings featuring AFM-represented musicians to AI music companies Suno and Udio without providing proper compensation or credit to the performers. The union further contends that the labels have refused to disclose which specific recordings and whose work have been licensed for AI training purposes, a critical point of contention for members who argue their talent is being used to fuel AI profits without their share of the revenue.
The lawsuit stems from a 2024 dispute where UMG, WMG, and Sony sued Suno and Udio for copyright infringement. By late 2025, UMG and WMG had begun pursuing licensing arrangements with AI music companies, arguing that these agreements could help foster a “healthy AI ecosystem” with artist oversight. However, the AFM contends these deals bypass musician compensation for “new uses” of their work. UMG and WMG representatives expressed disappointment, favouring negotiations over litigation.
This litigation underscores industry-wide concerns about AI dataset transparency. Central to the dispute is the labels’ use of blanket contractual clauses to license music catalogues for AI training without specific creator consent. While newer contracts may require explicit authorisation, experts believe older agreements are still being used to grant access to vast libraries.
