SoundCloud Faces Artist Backlash Over AI Training Clause in Updated Terms of Use
May 11, 2025
As the situation evolves, continued scrutiny of SoundCloud's terms and those of other digital service providers is essential amid the growing capabilities of AI.
Unsigned artists are particularly vulnerable, facing less protection compared to those signed with major labels, a situation criticized by Newton-Rex as unjust.
In response to the backlash, SoundCloud plans to introduce opt-out mechanisms for users, though many musicians view this as an unfair burden.
SoundCloud is aware of ongoing lawsuits against AI companies for copyright infringement and asserts its commitment to ethical standards and licensing agreements.
SoundCloud has faced significant backlash after updating its Terms of Use to allow user content to be used for AI training, raising concerns among artists about the control and compensation of their work.
The controversial clause, highlighted by tech ethicist Ed Newton-Rex, sparked a rapid response from the music community, with many musicians only discovering the change through social media.
This clause has alarmed musicians and rights advocates, who are worried about consent and compensation as generative AI technologies evolve.
Despite reassurances from the company that it has never used user-uploaded music for AI training, the ambiguous wording of the new terms continues to raise user dissatisfaction.
The company has faced financial challenges, including significant layoffs in recent years, as it seeks to develop generative AI products to assist artists.
Newton-Rex has threatened to remove his music from the platform if it includes generative AI models in its training processes.
Legal experts warn that vague clauses in service agreements can undermine artist rights, particularly when users do not fully understand what they are consenting to.
In light of these developments, over 400 individuals, including prominent artists like Elton John and Dua Lipa, have signed an open letter urging the UK government to amend the Data Bill for better transparency in AI training.
Summary based on 29 sources
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Sources

Mashable • May 10, 2025
Soundcloud changed its AI policy so it can train on users' audio
Billboard • May 12, 2025
SoundCloud Says Users’ Music Isn’t Being Used for AI Training Following Backlash
9to5Mac • May 12, 2025
SoundCloud latest company to hit trouble with AI clause in T&Cs - 9to5Mac