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When Music is Made by AI: Effects on Preferences and Willingness to Pay

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  • Jana Friedrichsen
  • Julia Schwarz
  • Michel Clement

Abstract

Artificial intelligence (AI) is rapidly reshaping society, including the music industry. Recent advancements in generative AI enable users to create music from text-based prompts, raising questions about public perception and valuation of AI-generated music. We conducted three studies with German-speaking participants (Study 1: N=2000, Study 2: N=425; Study 3: N=1248) to explore awareness, enjoyment, and willingness to pay for AI music. After finding no clear rejection of AI composed music in Study 1, Study 2 varied whether listeners knew the music was AI-generated. Study 3 involved regular listeners of pop and electronic dance music, manipulating song origin (human vs. AI) and disclosure. Results show that listeners generally could not distinguish between AI and human-made songs. When unaware, participants slightly preferred AI music and valued it equally. However, disclosing that AI had been used to create compositions reduced appreciation and willingness to pay. We explore how reactions differ by genre and individual attitudes toward AI and discuss implications for the music industry and for regulatory initiatives.

Suggested Citation

  • Jana Friedrichsen & Julia Schwarz & Michel Clement, 2026. "When Music is Made by AI: Effects on Preferences and Willingness to Pay," CESifo Working Paper Series 12405, CESifo.
    • Handle: RePEc:ces:ceswps:_12405
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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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