AI-assisted fraud is no longer a distant risk for digital platforms, it is already reshaping how systems can be exploited. A North Carolina man’s guilty plea in a multi-million dollar music streaming scheme shows just how easily artificial intelligence can be used to manipulate royalties at scale.

Michael Smith, 54, admitted to running a fraud operation that used AI-generated songs and automated bots to game music streaming platforms. The scheme brought in over $8 million in royalties, diverting earnings away from legitimate artists. How AI-assisted Fraud Worked

Music streaming platforms pay royalties based on the number of times a song is played. These payments come from a shared pool...