From Dallas Austin’s MESA AI to Chappell Roan’s Grammy Callout: The Industry’s Biggest Debates

The latest episode of the Music Entrepreneur Club podcast took a deep dive into the impact of AI on the music industry featuring special guest Brandman from No Labels Necessary. The conversation touched on AI’s potential to revolutionize music production while also raising ethical concerns about its role in creativity.

Music industry veteran Dallas Austin introduced MESA, an AI-powered tool designed to assist producers by sourcing samples, generating music ideas, and enhancing workflow efficiency. While some see AI as a powerful creative assistant, others, like Pay, raised concerns about ethics, particularly around consent and data sourcing. AI-generated music platforms, such as Sunno, have already faced backlash for allegedly replicating the voices and sounds of real artists without permission.

Brandman argued that while AI might replace low-level technicians, true artists who understand music theory and production will have a competitive edge. Aaron emphasized that AI, like previous innovations such as autotune and digital workstations, will be used differently by different artists—some to enhance their work and others as a shortcut to bypass traditional skills.

AI has the potential to democratize music production, allowing independent artists with minimal technical knowledge to create high-quality sounds without expensive studio time. However, there is an ongoing debate about whether AI-generated music can truly capture the human experience.

Critics argue that while AI can replicate the structure and sonic elements of a song, it lacks the emotional depth and lived experiences that define authentic artistry. Furthermore, legal questions remain about how AI models are trained and whether they unlawfully pull from copyrighted works.

The broader music industry is also grappling with the implications of AI-generated music. Platforms such as Spotify and YouTube are being flooded with AI-generated tracks, raising concerns about market oversaturation and potential devaluation of original human-created works. Additionally, major record labels are already looking into ways to regulate AI-generated content, with some proposing clearer licensing agreements and compensation structures to protect songwriters and performers.

Touring Woes: Kate Nash’s $50K Loss Highlights Industry Struggles

The discussion also turned to the financial challenges of touring, with UK artist Kate Nash revealing that she lost $50,000 on a North American tour despite selling out shows. Rising costs, inflation, and industry fees have made it increasingly difficult for mid-tier artists to make a profit on the road. Pay and Aaron shared their own experiences of navigating tour budgets, emphasizing the importance of strategic planning and creative revenue streams.

The financial strain of touring is not a new issue, but it has worsened in recent years due to rising fuel prices, inflation, and changing consumer habits. Many venues and promoters take significant cuts from ticket sales, leaving artists to rely on merchandise sales and VIP experiences to turn a profit. Additionally, the cost of travel, accommodations, and crew salaries can quickly add up, making it hard for independent artists to sustain long-term touring without financial backing.

Aaron suggested that instead of traditional tours, artists should consider pop-up residencies and curated experiences to maximize revenue and fan engagement. He cited Bad Bunny’s decision to hold a residency in Puerto Rico as an example of an innovative approach that reduces costs while creating a more immersive experience for fans.

Alternative strategies, such as fan-funded tours and sponsorship collaborations, are becoming more popular as artists look for ways to mitigate financial losses. Some artists are turning to crowdfunding platforms like Patreon and Kickstarter, allowing fans to directly support their tours in exchange for exclusive content and experiences. Others are securing brand partnerships that provide financial support in exchange for advertising placements at concerts.

Moreover, some artists are experimenting with virtual concerts and hybrid tours, where they mix live performances with online streaming events. This approach not only broadens an artist’s reach but also reduces logistical costs associated with traditional touring. However, there is still debate about whether digital experiences can truly replicate the energy and connection of a live show.

Chappell Roan Calls Out Record Labels in Grammy Speech

One of the most powerful moments in the conversation came when the hosts dissected Chappell Roan’s viral Grammy acceptance speech. Roan used her platform to demand livable wages and healthcare for artists, recounting her struggles after being dropped from her label as a minor. She called on record companies to treat artists as employees rather than disposable assets, prompting a larger industry conversation about fair compensation and artist welfare.

Roan’s speech resonated with many in the industry who have long criticized the traditional record label model. Major labels have historically operated on an investment-based system, where they provide upfront financial support in exchange for a significant share of an artist’s revenue. This structure often leaves artists in debt-like contracts, where they are expected to recoup label expenses before seeing any significant profit.

While some agreed with Roan’s stance, others, including Pay, questioned whether labels—traditionally investors rather than employers—should be responsible for healthcare. The argument against this idea is that artists are independent contractors, not employees, meaning they are not entitled to benefits typically provided to full-time workers. However, Aaron pointed out that some independent labels, such as LVRN, have already adopted artist-friendly models that provide benefits, proving that change is possible.

The conversation also touched on the disparity between top-earning artists and developing acts. While major stars can command multimillion-dollar deals, smaller artists often struggle to make ends meet. Advocates argue that labels could allocate a portion of their massive profits towards artist support programs, including mental health services, financial education, and healthcare stipends.

As the music industry continues to evolve, these conversations will remain critical in shaping its future. Whether it’s AI-driven innovation, the rising costs of touring, or the fight for fair treatment of artists, the landscape is shifting—and those who adapt will be the ones who thrive.

With artists, executives, and industry stakeholders weighing in on these pressing issues, the future of music remains uncertain but undeniably ripe for transformation. Will AI revolutionize music for the better, or will it lead to creative homogenization? Can independent artists find sustainable ways to tour, or will financial barriers push live performances further out of reach? And will labels be held accountable for artist welfare, or will musicians continue to navigate an exploitative system? Only time will tell, but one thing is certain—the conversation is far from over.