I'm an AI Record Label Owner. The Major Labels Are Getting AI All Wrong.

This week, you might have read that an AI-generated song topped the global streaming charts. You might have also read that major record labels are suing AI startups for billions... and at the same time, that they are in talks to license their music catalogs to those very same startups.

If this seems confusing and contradictory, it's because the legacy music industry is fighting the last war. They're getting AI all wrong. As the founder of a hybrid label that works with both human artists and AI projects, I believe there's a clearer, more honest path forward.

The Problem: Deception and Distrust

A recent, excellent article in El País detailed the bizarre world of "fake bands"—AI projects with completely fabricated histories that are racking up millions of streams. This highlights the core problem the industry faces. It's not the AI; it's the deception. When a listener discovers that the artist and their story aren't real, it erodes trust. It turns a potential fan connection into a transaction, and it devalues the very idea of artistry.

The Reaction: Panic and Contradiction

Faced with this new reality, the major labels are trying to have it both ways. As reported in the Economic Times, they are simultaneously suing AI companies to protect their old model while trying to partner with them to get a piece of the new one. This isn't a strategy; it's a panicked reaction. They are trying to both sink the ship and buy a ticket for it at the same time, and this confusion is creating a crisis of trust for artists and fans alike.

The Solution: A Transparent, Hybrid Model

At JG BeatsLab, we resolved this contradiction from day one by embracing a transparent, hybrid model.

Our foundation will always be the irreplaceable power of human artists. Nothing can replace the story, the shared history, and the raw creative energy of a band like Gillsaw. Their music comes from their lives, their passion, and years of practice. That is the bedrock of musical authenticity, and it's what we are fundamentally here to support.

 
JG BeatsLab Artist: Gillsaw
 

And alongside our human artists, we openly develop Human+AI projects like the chart-climbing The 112 Groove. We don't pretend they are a band that met in a Havana café. We are clear about the process: we act as creative directors, using AI as an incredibly powerful instrument to explore new sonic palettes, and then we, as human producers, curate, mix, and master the final output. There are no 'fake' backstories, only great music guided by a human ear.

 
 

This philosophy extends to our new venture, Sincerely, A Song, which uses professional human artists to turn real memories into music, the ultimate form of authentic creation. It proves our core belief: whether the tool is an AI, a guitar, or a symphony orchestra, its purpose is to help create a powerful human connection through music.

 
 

A Better Path Forward

The future isn't about fighting or hiding from AI. It's about transparently integrating it as a tool, directed by human taste, alongside a continued and unwavering commitment to human artistry. The major labels will eventually figure this out. We're already doing it.

What do you think the role of a label should be in the AI era? Let's discuss in the comments.

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Beyond the Stream Count: How We Find Real Fan Engagement