American musician Michael Smith has been sentenced to 18 months in prison for using automated bots to generate billions of fake streams of AI-generated songs. The Michael Smith AI streaming fraud case highlights how he fraudulently earned more than $8 million in music royalties.
According to the United States Department of Justice, the 54-year-old North Carolina resident received the sentence on Tuesday, October 6, 2026. He was sentenced after pleading guilty to conspiracy to commit wire fraud in March.
US District Judge John Koeltl also ordered Smith to forfeit $8,091,843.64. In addition, he must serve two years of supervised release after completing his prison sentence.
Prosecutors revealed that Smith operated the fraudulent scheme between 2017 and 2024. Specifically, the Michael Smith AI streaming fraud involved thousands of fake accounts on streaming platforms, including Spotify, Apple Music, Amazon Music and YouTube Music.
How Smith made $8m from AI-generated music
Investigators discovered that Smith created thousands of fraudulent streaming accounts using fake email addresses and illegally obtained debit cards.
He subsequently used automated software to repeatedly stream songs associated with his accounts. This created the false impression that millions of listeners were enjoying his music.
As the operation expanded, Smith turned to artificial intelligence to produce hundreds of thousands of songs. This allowed him to distribute the fake streams across numerous tracks without attracting attention.
At the height of the scheme, he operated as many as 10,000 bot accounts simultaneously.
Notably, in the context of Michael Smith AI streaming fraud, prosecutors revealed that in April 2023 alone, his accounts generated 80.9 million fraudulent streams on YouTube Music. He used family subscription plans to achieve this.
By comparison, Taylor Swift’s entire catalogue recorded 9.3 million streams through family plans on the platform during the same month.
The fraudulent activity diverted royalty payments that would otherwise have been distributed among legitimate musicians and songwriters.
US court condemns streaming fraud
Reacting to the conviction, US Attorney Jamie McDonald accused Smith of exploiting emerging technology to manipulate the music industry.
“By flooding music streaming platforms with automated bots in the place of consumers,” McDonald said, Smith had diverted royalties from genuine creators.
The prosecutor maintained that the conviction demonstrated the government’s commitment to protecting the music industry’s financial integrity.
Smith also expressed remorse during his sentencing hearing, acknowledging the damage caused by his actions.
“I betrayed the music community I care so much about,” he told the court.
Furthermore, the case represents the first criminal prosecution of its kind involving Michael Smith AI streaming fraud and AI-assisted music streaming fraud in the United States.
While producing AI-generated music is not itself illegal, deliberately manipulating streaming figures to obtain royalties fraudulently constitutes a criminal offence.
The sentencing highlights growing concerns about artificial streaming and its financial impact. As a result, the issue of Michael Smith AI streaming fraud has raised alarm, especially for musicians who depend on legitimate streams for income.
