Because of AI use: US musicians’ union sues major label

The protection and payment of this service is the subject of a lawsuit filed at the end of last week by the American Federation of Musicians of the United States and Canada (AFM) against Universal Music and Warner Music. The union, which represents 70,000 musicians, believes the two major labels violated the collective agreement with the AFM by allowing AI companies Suno and Udio to use music from their catalogs.

“Both Universal and Warner have failed and refused to compensate the musicians for AI’s use of their recordings,” says the lawsuit, which seeks to pay the musicians retroactively.

Suno and Udio have developed AI platforms that can be used to create songs. This software was trained with music from Warner and Universal, among others. The labels sued against this unlicensed use in 2024. In autumn 2025, the dispute was settled with deals between the record companies and the software developers: Suno and Udio received the license to use millions of songs, and further joint tool developments were agreed.

Warner CEO Robert Kyncl spoke at the time of a “victory for the creative community from which everyone benefits”. The AFM apparently sees things differently. The lawsuit states: “While defendants protected their own interests and created a significant new source of revenue through retroactive settlements and future licensing, they refused to compensate the musicians whose works – created with their own instruments and thanks to their talent, creativity and hard work – are fed into AI systems for profit.”

The union argues that licensing to AI platforms represents a “new use” of music. According to the collectively regulated “Sound Recording Labor Agreement”, such use must be disclosed and paid for. The AFM sees neither as the case.

According to Billboard Magazine, Warner reacted with disappointment to the lawsuit and described it as an “unproductive approach.” Universal was optimistic that an agreement could be reached through negotiations.