Spotify has extended its artificial intelligence-powered music creation tool to the independent music sector by signing an agreement with Merlin, the licensing representative for independent labels across more than 70 countries. The tool enables Spotify Premium subscribers to generate fan-made covers and remixes using artists' existing recordings, operating as a paid premium add-on that directs revenue back to the original creators.

The deal with Merlin follows Spotify's May partnership with Universal Music Group to launch the same technology and forms part of the platform's broader effort to introduce artist-centred AI music products. Spotify frames the initiative around three core principles—obtaining artist consent to participate, ensuring proper credit attribution, and providing financial compensation—though major labels including Sony Music Group, Warner Music Group, and others have not yet announced similar agreements, leaving portions of the music catalogue currently unavailable for the feature.