Not only that, but music generated by AI is not copyrightable. If it's truly 100% AI generated, you can redistribute it to your heart's content without infringement. (IANAL)

Someone will surely attempt some kind of end-run around this, perhaps through ToS alterations at the service you obtain the music from, but it's undoubtedly a problem for the labels. In the meantime they have a strong incentive to keep human creativity in the loop.

To me the anti-AI crowd is looking at this through the wrong lens, it's now possible to generate an infinite library of music that isn't copyrighted, and can be freely shared, some of which is quite good. There is a pathway all the way from conception to mass distribution that doesn't require the major labels. Whatever else happens that seems like a silver lining at least.

it's now possible to generate an infinite library of music that isn't copyrighted, and can be freely shared, some of which is quite good.

Many YouTube channels started using AI music because they were getting sick of copyright strikes, and I agree some of it is actually very good.