Their approach of "manually tagging songs that are good 'non-AI' and not good 'AI'" is a questionable approach from an engineering and product perspective.

They would benefit much more from a have a better recommendation and ranking algorithm that carefully monitors all metrics, recommends high-performers, and excludes unpopular content from the feed.

You can use the fact it was AI-generated as a signal, but it is just a signal among other criterias, not an outright ban.

Essentially, explore songs and artists, exploit winners.

    Lot of people abort a song/artist/creator/etc.

    Lot of fake listens.

    People don't like the song of an album

    Creator is historically with a low score

    etc...

( https://en.wikipedia.org/wiki/Multi-armed_bandit )

Then you judge the popularity of a song, an album, a creator, a playlist, etc not its creation method. Exactly like a genre type. It's not because you don't like country music that everybody should be forbidden to listen to country music.

It's good for them too, the more streams they do, the more money they get, and the more their audience is engaged. If the person doesn’t like “AI-generated genre” then just downrank it heavily on its recommandation feed, like YouTube or TikTok does.