Grainge’s New Year memo signals UMG’s proactive stance on AI, underscoring the need for responsible engagement with the technology.
In his annual memo to staff, Universal Music Group’s chairman and CEO, Lucian Grainge, emphasized the importance of responsible artificial intelligence (AI) initiatives. The memo, recently obtained by Billboard, outlines not just UMG’s past year of partnerships in the AI sector, but also Grainge’s vision for how the company will navigate this rapidly evolving technology.
AI has been a hot topic across the music and cultural spheres over the last year. Grainge noted that UMG has entered various partnerships, including deals with major platforms like YouTube, Meta, and TikTok, alongside collaborations with emerging AI companies such as Udio and Stability AI. He highlighted the dual goal of these partnerships: to safeguard artists’ rights and to create new pathways for creativity and revenue. “The substantial progress we made last year on multiple fronts makes me extremely optimistic about AI’s enormous positive potential in the years ahead,” Grainge stated.
Grainge articulated a nuanced approach to AI, rejecting both extremes of the debate. Some in the creative community advocate for complete disengagement from AI, while others believe the technology’s prevalence necessitates little scrutiny. He insists that history shows attempts to suppress new technology are counterproductive. Instead, he believes in engaging with AI thoughtfully to promote innovation while protecting artists’ rights.
UMG’s commitment to AI isn’t just about capitalizing on new tech; Grainge made it clear that the company will not support business models that devalue artists or hinder their creative output. He described protecting the interests of artists as a personal mission, stating, “Let me be clear: UMG will not stand by and watch irresponsible business models take hold. Protecting our artists, our people, our company, and our industry is not just a job to me, it’s a mission.” In light of this, he outlined UMG’s strategies for leveraging AI in ways that respect and enhance artistic creation.
The memo also highlighted UMG’s success in 2025 across various streaming platforms and the company’s ongoing commitment to initiatives like Streaming 2.0, which aims to rethink how streaming royalties are distributed. Grainge expressed enthusiasm for upcoming projects, including a potential acquisition of Downtown Music Holdings that will expand UMG’s reach and services for independent labels.
Grainge’s memo reflects a forward-thinking approach as the music industry grapples with the implications of increased AI utilization. He pledged to keep artists at the forefront of these discussions, ensuring that they remain central in technology debates, public policy, and commercial opportunities. Looking ahead to 2026 and beyond, he underscored UMG’s commitment to maintaining a collaborative, artist-centric environment in an ever-evolving digital landscape.