U.S. man sentenced to 18 months in prison and fined $8 million for ai-driven music copyright fraud

On October 8, 2026, the U.S. Department of Justice announced that Michael Smith, a man from North Carolina, was sentenced to 18 months in prison and fined $8 million for using artificial intelligence to defraud music copyright revenue. Smith generated hundreds of thousands of songs between 2017 and 2024 using AI, then uploaded them to streaming platforms through thousands of fake accounts created with stolen email addresses and debit cards. He also used a vast network of bot accounts to simulate legitimate plays, siphoning revenue meant for real artists. The legal system explained that streaming platforms distribute royalties based on playback data, meaning fraudulent activity redirects income from genuine creators to those exploiting automated systems. This case highlights the growing risks of AI misuse in the music industry, as authorities continue to crack down on digital fraud.