The Australian Recording Industry Association (ARIA) will no longer allow fully AI‑generated recordings to appear on its official charts, a change that takes effect on the chart dated 31 August 2026. The decision follows the meteoric rise of Queensland DJ Josh Fawaz’s AI‑generated cover of Madonna’s “Like a Prayer,” which peaked at No. 4 on the ARIA Top 20 Australian Singles chart and became the most‑played track on Australian radio.

Under the new rules, tracks produced entirely by generative artificial intelligence are ineligible for chart placement. Songs that employ AI only in a supporting capacity—such as for background instrumentation or vocal augmentation—remain eligible. The ban was announced on 24 August 2026, after ARIA updated its Charts Code of Practice to reflect the growing prevalence of AI‑generated content.

The move comes amid a broader legal backlash against uncredited AI production. Fawaz added AI credits to his version of “Like a Prayer” on Spotify on 17 July 2026 after criticism that the track had been produced without disclosure. The track’s popularity highlighted the increasing presence of AI‑generated music on streaming platforms and radio.

In July 2026, a Munich regional court ruled that Suno, an AI music‑generation platform, infringed copyright by training its models on protected works without permission. The court prohibited Suno from reproducing memorised works, from offering the model to the public, and from producing outputs that were substantially identical to existing recordings. The ruling did not address outputs that are not substantially identical, leaving a gap that could affect royalty calculations.

Settlements between major labels and AI companies have surged in recent months. Universal Music Group settled with Udio in October 2025 and announced a joint licensed service that offers opt‑in artist compensation. Warner Music Group settled with Suno in November 2025, licensing its catalog and acquiring Songkick as part of the agreement. BMG signed a global licensing deal with Suno in August 2026, and ElevenLabs launched Eleven Music with existing deals with Merlin and Kobalt.

Streaming data shows a rapid rise in AI‑generated content. Deezer reported that in January 2025 it received 10,000 fully AI tracks per day—about 10 % of all uploads. By April 2026 the figure had grown to 75,000 tracks per day, and by June 2026 it reached 90,000 tracks per day, roughly half of all uploads. SubmitHub’s analysis of over a million releases in July 2026 found 23.2 % were fully AI‑generated and an additional 15.3 % were AI‑modified by humans.

Consumer perception of AI music remains limited. A blind‑test study commissioned by Deezer in October 2025 found that only 3 % of 9,000 adults could distinguish AI tracks from human‑produced ones. Surveys of musicians indicate growing acceptance: 18 % of U.S. musicians use AI to edit or remix tracks, and 54 % are positive about generative AI.

The rise of AI music also affects the sync market. IFPI’s Global Music Report 2026 recorded a 2 % decline in synchronization revenue, falling to $641 million. The decline coincides with the adoption of generative audio tools by platforms such as Canva, CapCut, and Adobe Firefly, which allow users to create music for video and advertising without licensing existing recordings.

Small businesses are turning to AI music to sidestep licensing costs. The New Zealand Herald reported that cafés are switching to AI‑generated playlists. Soundtrack’s CMO Lisa Farris stated that 79 % of businesses do not use music legally, costing creators $1.4 billion in lost royalties. AI‑music platforms such as Melodial provide curated playlists for venues, and start‑ups like Tonada have raised $3 million in pre‑seed funding.

Industry analysts warn that AI could erode a significant portion of music‑royalty income. Sabam, a Belgian collecting society, estimates that songwriters could lose 25 %–28 % of public‑space income to AI music. CISAC’s economic model projects that by 2028 AI will account for about 20 % of streaming revenue and 60 % of music‑library revenue, putting 24 % of creators’ revenues at risk. Publishing multiples have fallen from 19.4 x in 2021 to 16.1 x in 2024, with a forecast of 15.1 x by 2028. Despite these risks, the M&A market remains active, with deals such as Blackstone’s acquisition of Hipgnosis and Primary Wave’s purchase of Kobalt.

The ARIA ban removes AI tracks from the public charts but does not address royalty payments. The broader trend shows that AI‑generated music is expanding across streaming, radio, and commercial use, creating new revenue streams for AI companies while potentially reducing recurring royalties for traditional rights holders.