Michael Smith, aged 54, admitted to using artificial intelligence to generate thousands of songs and stream them billions of times using bot networks across platforms including Spotify and Apple Music, stealing more than $8 million in royalties from musicians and songwriters over a six-year period starting in 2017. This case represents the first U.S. criminal prosecution for streaming fraud, a problem significantly exacerbated by AI tools enabling the creation and automated distribution of fake music on streaming platforms.

Smith pleaded guilty in March to wire fraud conspiracy and agreed to forfeit the $8 million in illicitly obtained proceeds. Federal prosecutors are seeking at least 46 months' imprisonment, arguing his sophisticated scheme directly harmed working musicians whose legitimate streams were diluted within the industry's finite royalty pool, whilst Smith's defence counsel maintains that the impact on any individual artist was negligible. Federal sentencing guidelines recommend between 46 and 57 months, though probation officials recommended a lighter 24-month sentence.