Sir Lucian Grainge Talks AI, Spotify, and Functional Music at GREATER Together LA

Sir Lucian Grainge on AI, Spotify, and why he’s not in the ‘functional music’ industry

May 28, 2026 By Murray Stassen

Sir Lucian Grainge called artist opt-in protections for AI “critical” during an appearance at Britain’s trade mission to Los Angeles last week.

The UMG Chairman and CEO was speaking hours after his company  announced a licensing deal with Spotify  enabling fans to create AI-powered covers and remixes.

Grainge closed the GREATER Together LA summit, described as Britain’s biggest ever trade mission to the US, in conversation with Janice Min, CEO and Editor-in-Chief of Ankler Media.

The session, titled ‘Driving innovation through the Power of Artistry’, took place at NYA Studios in Hollywood on May 21.

Earlier the same day, Spotify hosted its Investor Day presentation in New York City, where the details of that UMG deal were unveiled.

Grainge, a London native who was  knighted in 2016  for his contributions to the music industry and to British business, co-hosted the three-day summit alongside Sir Jony Ive.

As well as discussing AI and tech partnerships, the conversation touched on British artists’ global success and Grainge’s own relationship with music.

“What do great artists have in common? Attitude,” he said. “That’s all about authenticity. Believing in their stories and their storytelling.”

Grainge also traced his own relationship with music back to childhood: “My dad was probably my biggest musical influence on me,” he said. “He loved everything from Mahler to Count Basie to Louis Armstrong to Neil Diamond. I would be woken up as five- or six-year-old, with music blaring from the radio.”

“I suppose the music that really changed my life included Elton John in the early ’70s. It hit me there was nothing else that I could possibly do. The thing about music is it chooses you.”

Here are three other things we learned from the conversation.

1. On UMG’s Spotify AI deal: ‘Name and likeness, voice are all opt in. They’re critical.’

Grainge used the GREATER Together stage to publicly endorse the Spotify AI licensing deal announced the same day, and to underline the non-negotiable principle he says underpins it.

“They’re at the forefront again with their new AI product [we announced today],” Grainge said of Spotify.

“Name and likeness, voice are all opt in. They’re critical. That’s religion.”

He added: “So it’s our job, along with the platform, to explain what the technology is and what provisions the technology gives. I think it’s about the power of possibility. And for the super fans, it will be completely interactive.”

That language is among the most forceful Grainge has used publicly to describe UMG’s stance on AI consent.

He has previously described AI as an opportunity rather than a threat, telling analysts on UMG’s Q4 2025 earnings call that “we fundamentally disagree” with investors who see “only risk” in the intersection of AI and music.

Under the terms of the Spotify deal , the AI covers and remixes tool will launch as a paid add-on for Premium subscribers, with participating artists sharing in the revenue generated.

The agreements cover both recorded music and music publishing.

2. He’s ‘not in the functional music industry’

Grainge also addressed the question of AI-generated “functional” music, the ambient and utility content that UMG has elsewhere labelled “AI slop” .

“People talk to me about, you know, what is AI slop, what is spa music? It’s functional stuff,” said Grainge. “I’m not in the functional music industry.”

He went on: “We care deeply about investing in human beings and their ideas. Their rhythms and their melodies. As a team, we help them bring the best of who and what they are. And AI will be a tool to help them.”

Grainge cited a colleague, a songwriter, and their description of AI’s creative potential: “Imagine working with an AI tool that’s always like collaborating with yourself on your best day.”

He also said he does not believe audiences want AI-generated music to replace the real thing: “Everywhere I go, meeting leaders in technology, they often say: all the data shows that human connectivity and human experience in creativity is the thing that people want.

“Will there be some functional music that helps you get to sleep? There’s always been that. But in terms of the bulk of everything that we’re talking about, I do not believe that the consumer, that the audience, wants anything else other than something that’s true and authentic.”

Those comments are consistent with UMG’s broader strategy.

In his annual memo to UMG staff in January , Grainge warned that “validating business models that fail to respect artists’ work and creativity, and promote the exponential growth of AI slop on streaming platforms, is a grave disservice to artists, songwriters and all of us who work in music.”

3. On building tech partnerships: ‘The people who you can’t make deals with are never going to respect the business’

Grainge offered a potted history of UMG’s platform relationships, and a pointed message about deal-making.

On YouTube , he recalled: “I remember being in meetings in Downing Street 20 years ago, around YouTube and the value gap and safe harbor. Look where the relationship is now with Google and YouTube. They are one of our biggest customers. Together we’ve been able to create YouTube Music as a premium subscription service, with 125 million subscribers.”

That 125 million figure aligns with the most recent milestone announced by YouTube, which confirmed in March 2025 that YouTube Music and Premium had crossed 125 million subscribers globally, including trials.

On Spotify, Grainge said: “I first met Daniel Ek back in ’06 or ’07. You know, it took five years until there was real traction and scale [for Spotify]. We got some things right. We got some things wrong. We developed a strategic relationship.”

Spotify reported 293 million premium subscribers at the end of Q1 2026.

He framed the broader lesson as follows: “The speed of change is quicker than ever before. We make deals that are win win. And the people who you can’t make deals with are never going to respect the business, or the creativity, or the investment.”

One company UMG does not have a deal with is Suno, the AI music generator. UMG and Sony Music are  currently suing Suno for copyright infringement , with the labels recently seeking to add over 61,000 copyrighted recordings to the lawsuit after discovery revealed Suno had trained on “millions” of their tracks. Music Business Worldwide

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_Originally reported by [Music Business Worldwide](https://www.musicbusinessworldwide.com/sir-lucian-grainge-on-ai-spotify-and-why-hes-not-in-the-functional-music-industry/)._