Man Sentenced To 18 Months For $8 Million AI Streaming Fraud

A North Carolina man has been sentenced to 18 months in prison for using artificial intelligence-generated music and thousands of fake accounts to commit streaming fraud that generated more than $8 million in royalties.

A Manhattan federal judge sentenced Michael Smith on Tuesday, marking the first criminal conviction in the case. Prosecutors said Smith manipulated streaming platforms between 2017 and 2024 by using automated accounts to generate artificial streams for his AI-created songs.

Judge John G. Koeltl also ordered Smith to forfeit $8.09 million. The Recording Industry Association of America said streaming fraud harms creators and deceives audiences, while the International Federation of the Phonographic Industry warned that generative AI could make large-scale fraud faster and cheaper.

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tippinsightsTIPP Staff