In October, Universal Music Group and AI music company Udio announced a watershed partnership with the goal of enabling consumers worldwide to enjoy AI-generated music via a new subscription platform expected to launch next year. Just a few weeks later, Warner Music Group entered a similar partnership with Udio, although it’s currently unclear if their licensed AI platform will be combined with UMG’s platform or stand on its own.
However, new Luminate survey data suggests that a notable hurdle could be U.S. consumers’ skepticism and disinterest in AI music.
Luminate’s U.S. Entertainment 365 survey for Q3 2025 found 45% of respondents reported feeling either very or somewhat uncomfortable about generative AI being used to create original music, with just 24% saying they were comfortable.
Interestingly, Millennials were significantly more open to AI music than other generations, including Gen Z, who seem more in line with Gen X or Boomers than their younger counterparts.
Of course, a current key issue with AI music’s rise is the realization that most people don’t even know when they’re listening to AI music on streaming platforms or curated playlists. If a song is specifically identified as being made with AI, however, 42% of respondents said they would become less interested knowing AI was involved in its creation — versus 25% who would be more interested.
Once again, there was a notable divide between Gen Z, who were just 1 percent behind Boomers for disinterest, and Millennials, the most interested generation at 32%.
For UMG, the Udio partnership hits on two core tenets of its ongoing “Streaming 2.0” initiative: to establish artist-friendly deals with companies looking to develop AI tools; and to create new music monetization opportunities.
These goals are likely why Udio is being transformed into what UMG described as a “walled garden,” a place where users can create and share AI-generated music but can’t export that work outside of the platform. There aren’t many details about Warner’s agreement with Udio yet, although it’s likely they reached similar terms to that of UMG being considering Warner’s own push to cut deals and set parameters with AI companies.
Granted, none of this will matter if Udio 2.0 doesn’t find an audience, which evidently won’t be easy. And even among respondents who reported using generative AI within the past 12 months, just 24% used AI to produce music, as opposed to 37% for images and 35% for writing.
While Udio getting rid of downloads has prompted pushback from current users, the idea of a label-sanctioned, multimedia music hub isn’t without precedent. Superfan apps including Weverse have found great success by being a one-stop shop for music fans. But a key factor for these apps’ success is the self-sustaining passion the fans have for their favorite artists.
Whether that passion exists specifically for AI music remains to be seen, although AI-generated artists such as Xania Monet have started to find audiences and even reach the Billboard charts in recent months.
To learn more about how consumers feel about the music landscape, contact us about accessing the Entertainment 365 survey.
