An Executive Voices Blog by Simran Bhatia, Brand Licensing Technologist at Isaac Morris Ltd

Artificial intelligence is changing the way we create, experience, and market music. In recent years, AI-generated artists—virtual performers built using machine learning—have grown from niche experiments into real influencers with dedicated audiences. These synthetic musicians are now driving fan-led products, immersive digital experiences, and licensing opportunities, creating both exciting possibilities and new challenges for brands, licensors, and the entertainment industry.

Some AI artists have already gained major popularity, especially among younger, digitally savvy audiences. FN Meka, an AI rapper trained on thousands of online data points, built a following of over 10 million users on TikTok before being pulled offline due to controversy. Yameii Online, a futuristic pop star with anime-inspired visuals, has become a favorite on TikTok and YouTube. Hatsune Miku, one of the earliest examples, uses voice synthesis software and has headlined live concerts globally. These performers attract Gen Z and Gen Alpha fans who are used to engaging with digital avatars and virtual influencers.

Because AI musicians exist entirely online, they easily translate into consumer products and experiences. Some fashion brands have launched capsule collections inspired by their virtual aesthetics. Others have created limited-edition digital collectibles like NFTs, offering fans access to exclusive content or co-creation tools. For example, Claire Silver—an artist who collaborates with AI to produce visual art and music—has inspired physical and digital fashion drops that combine tech, creativity, and fandom.

This growing space is now reshaping how the licensing industry operates. Traditionally, licensing involved clear agreements with real-life artists, their labels, and legal representatives. With AI musicians, things get more complicated because ownership is less clear. Do deals need to be inked with the developer who built the AI model, the platform that distributes the content, or the person who provided the creative input? Many AI-generated works cannot be copyrighted unless there is enough human involvement, which makes it difficult to license them using standard legal frameworks.

Another concern is how the AI was trained. If a model used copyrighted music during its development without permission, then any music it produces might raise legal and ethical questions. As a result, brands interested in working with AI content must be cautious. They need to verify how the content was made, who holds the rights, and whether it can be used safely in consumer-facing campaigns.

On top of that, legal regulations around AI are changing quickly and vary by country. In the European Union, the new AI Act requires companies to clearly label AI-generated content, which could impact how products are packaged or promoted. In the United States, there is no single national law yet, but discussions are ongoing, and some states are already exploring their own policies. For companies running global licensing programs, this means adapting strategies for different regions and updating agreements regularly to stay compliant.

Despite the legal and technical challenges, the rise of AI-generated artists brings many exciting possibilities. These virtual performers offer consistency, flexibility, and scalability. They don’t age, miss deadlines, or fall out of the public eye. They can release new content quickly and be customized to match different brand voices or fan preferences. In the future, fans might be able to generate their own soundtracks or digital merchandise based on how they engage with an AI artist.

This level of personalization can lead to deeper fan engagement and new revenue streams for brands. For example, a sneaker brand might create a campaign where users co-create a song with an AI musician and receive a pair of shoes designed around the music. These kinds of cross-channel experiences can turn casual fans into active participants—and loyal customers.

As AI continues to evolve, the licensing industry will need to lead the way in setting clear guidelines, protecting IP rights, and ensuring responsible use. Brands and licensors who can strike the right balance between innovation and regulation will be best positioned to succeed in this new space.

AI is no longer just a tool in the background. It is now center stage—composing music, building fan bases, and launching products. For companies willing to explore this space with creativity and care, AI can be a powerful collaborator, opening a new chapter in how entertainment meets consumer experience.

Simran Bhatia is a Brand Licensing Technologist at leading apparel and accessories company Isaac Morris Ltd. She is a forward-thinking brand strategist who blends AI, licensing, and market insights to drive innovation. and cultural trends to uncover new opportunities and keep brands ahead of the curve.