Man Pleads Guilty to $8m Fraud Using AI-Generated Music and Bot Streams
A US man has pleaded guilty to orchestrating a large-scale fraud scheme that used artificial intelligence and automated bots to generate millions in streaming royalties.
According to the US Department of Justice, 52-year-old Michael Smith admitted to conspiracy to commit wire fraud after allegedly manipulating music streaming platforms between 2017 and 2024.
Prosecutors said Smith uploaded vast numbers of AI-generated songs to major platforms, including Spotify, Apple Music, Amazon Music and YouTube. He then used more than 1,000 automated bot accounts to repeatedly stream the tracks, inflating play counts and generating royalties.
Rather than concentrating streams on a few songs – which could have triggered detection – Smith and his collaborators spread activity across hundreds of thousands of AI-created tracks, uploaded under fabricated artist names.
Court documents revealed that the operation relied on dozens of cloud service accounts running multiple bots simultaneously. At its peak, the system generated hundreds of thousands of daily streams, producing thousands of dollars in daily revenue.
Authorities estimate the scheme generated more than $8 million in royalties, though Smith allegedly claimed higher figures in internal communications.
As part of his guilty plea, Smith has agreed to forfeit over $8 million and now faces a maximum sentence of five years in prison. Sentencing is scheduled for July 29.
US Attorney Jay Clayton said the case highlights the growing risks of AI-enabled fraud, noting that the scheme diverted significant earnings away from legitimate artists and rights holders.
The case has also drawn attention to the rapid rise of AI music generation tools, including platforms such as Suno, which are capable of producing millions of songs at scale.
Authorities say the conviction sends a clear warning about the misuse of emerging technologies in the digital economy.
