Feds say it's the first US criminal case involving artificially inflated music streaming.
On Wednesday, federal prosecutors charged a North Carolina musician with defrauding streaming services of $10 million through an elaborate scheme involving AI, as reported by The New York Times. Michael Smith, 52, allegedly used AI to create hundreds of thousands of fake songs by nonexistent bands, then streamed them using bots to collect royalties from platforms like Spotify, Apple Music, and Amazon Music.While the AI-generated element of this story is novel, Smith allegedly broke the law by setting up an elaborate fake listener scheme. The US Attorney for the Southern District of New York, Damian Williams, announced the charges, which include wire fraud and money laundering conspiracy. If convicted, Smith could face up to 20 years in prison for each charge.