Billboard Looks to 2026: How AI and Artist Control Are Rewriting the Rules

As the music industry charts a new course in 2026, Billboard's editorial team sat down for a roundtable discussion reflecting on the most pivotal moments of 2025 and outlining the narratives likely to shape the year ahead. From historic lawsuits to tech breakthroughs, their predictions paint a landscape defined by rapid change, legal tension, and evolving creative control.

Island Records Reemerges as a Powerhouse

Label performance in 2025 saw both legacy imprints and newer players step into dominant roles, but few made as strong a resurgence as Island Records. The label benefited from a clear shift in creative leadership under coCEOs Justin and Imran Majid. Their roster pushed into the spotlight with artists like Sabrina Carpenter and The Last Dinner Party, both of whom helped define the year's commercial and critical conversations.

Island's strategic partnership with Capitol UK proved to be a key driver in its success. This transatlantic collaboration helped elevate new acts such as Olivia Dean and Lola Young, both of whom earned Best New Artist nominations. Sabrina Carpenter's momentum also continued to build, capped by backtoback Album of the Year Grammy nominations, a rare accomplishment that places her in the company of Taylor Swift, Kanye West, Lady Gaga and Billy Joel.

What set Island apart was its ability to develop artists with a long runway. Dan, a former label reporter for Billboard, highlighted that the label had successfully transformed its bench strength into breakthrough moments. "Remy Wolf is still waiting on that big breakout, but Island has clearly invested in the right places," he said, noting that more rising stars from its roster are likely to impact 2026.

Artificial Intelligence: From Lawsuits to Licensing

The music industry’s complex relationship with AI dominated headlines in 2025, and the conversation is far from over. Kristen, who covers publishing and AI for Billboard, traced the arc from litigation to cooperation. Early in the year, major labels like Universal, Sony, and Warner launched legal action against AI music companies such as Suno and Udio. By the end of the year, however, settlements began to reshape the conversation.

Warner Music reached a deal with Suno, while Udio shifted its entire platform model to comply with licensing requirements from UMG and Warner. That pivot meant Udio would no longer allow users to freely generate songs for public distribution, opting instead for a closed system using only licensed material. These new agreements signaled the start of a transition period, where AI tools would be integrated under tighter control.

Still, not all companies have aligned. Sony remains the lone major label continuing litigation, pointing to unresolved concerns over data usage and copyright infringement. As Kristen explained, the difference in how much each AI firm had to concede has been a major factor. The disparity in deals also reflects the broader uncertainty within the industry about how to balance innovation with rights protection.

AI Artists and a New Era of Disclosure

The panel also explored the implications of AIgenerated artists in a postsettlement industry. One flashpoint was the signing of Zenia Monae, a fully virtual artist, by Hollywood Media. That deal, which blurred the line between avatar and artist, raised immediate questions about transparency and ethics.

As Bill pointed out, a major challenge in 2026 will be determining how much of a song's creation needs to be disclosed. "What's to stop people from just simply not disclosing that a song was made with AI?" he asked. Without standardized guidelines, the door is open for artists to use AI tools behind the scenes without fan or label oversight.

Dan added that how we talk about AI itself will need to evolve. "There needs to be more nuanced language around how we talk about AI in music," he said, pointing to the growing difficulty of distinguishing between AIassisted production and full generative authorship. This lack of clarity has already influenced licensing deals and could soon factor into chart eligibility as AIgenerated tracks creep closer to mainstream success.

Drake's Lawsuit Against UMG Sends Shockwaves Through HipHop

One of 2025’s most polarizing moments came when Drake filed a defamation lawsuit against Universal Music Group, his longtime label, in response to Kendrick Lamar's diss track "Not Like Us." The track included a line implying Drake was a pedophile, a bar that sparked both fan reaction and legal action.

Instead of suing Lamar directly, Drake alleged that UMG was complicit in defaming him by releasing and promoting the song. Bill, who covers legal affairs at Billboard, described the move as unprecedented. "It was reputational self immolation," he said. The reaction from the public and industry alike was swift, with many accusing Drake of undermining a genre built on lyrical freedom.

The judge ultimately dismissed the case, citing longstanding legal precedent that protects hyperbolic artistic statements under the First Amendment. As Bill explained, defamation law typically requires a provable false statement of fact, a threshold that rap battles rarely meet. Despite the loss, Drake has appealed the decision, keeping the case alive and the controversy in headlines.

What makes the lawsuit especially complicated is Drake's own prior advocacy for not using rap lyrics as literal evidence in court. In 2022, he signed a public letter alongside other artists urging lawmakers to respect creative expression in hiphop. By attempting to censor a diss track through legal channels, critics argue that Drake contradicted those principles and exposed a cultural fault line within the genre.

2026 Predictions: Marketing, Monetization and a Redefinition of "In"

Looking forward, the panel shared predictions and trends they believe will shape 2026. Liz pointed to a continued evolution in catalog deals, where more artists pursue structured partnerships rather than straight sales. This shift, she argued, reflects a generation of artists who are both financially literate and strategically empowered.

Dan forecasted a change in how the industry communicates about AI, predicting greater linguistic precision as stakeholders try to define authorship, rights, and transparency in a hybrid creative space. He also mentioned a cultural shift in how artists present themselves. "My out is just not caring about what other people think anymore," he said, referencing a growing emphasis on authenticity over optics.

Kristen emphasized a reallocation of marketing resources, with more brands and artist teams investing in live, real world events rather than digital campaigns. "In an age of AI, people are going to really yearn for live events, special experiences with artists in person," she said. She also noted that TikTok fan pages, once a go to marketing tool, are losing impact as fans grow more skeptical of fabricated engagement.

Bill ended with a warning, expect disputes over vague opt in structures tied to AI licensing. "The devil is always in the details," he said. As artists dig into the implications of recent settlement terms, 2026 could bring friction between creators and the platforms or labels that struck those deals on their behalf.

In a year where AI, artistry, and legal precedent will continue to collide, Billboard's editorial team agrees on one thing, the most important battles in music are no longer just on the charts, they are in the contracts, courtrooms and code that define what music will be tomorrow.