AI music creation tools surge 651% in revenue since 2023 [IMS Ibiza 2026 Report]

Generative AI and stem separation tools have seen revenue rocket 651% between 2023 and 2025, according to the new IMS Electronic Music Business Report 2025/26. Notably, the segment reached 333 million USD in 2025 with 63 million monthly active users, redrawing the creator economy in the process.

The IMS report, authored by MIDiA Research’s Mark Mulligan, places AI tools at the centre of a production shift. Meanwhile, traditional music software revenues excluding DAWs have fallen over the same window. In turn, the creator tools category is rebalancing around AI workflows.

Crucially, the report argues that AI’s biggest impact sits on the creation side, not the consumption side. The public debate has focused on copyright and streaming implications. Equally important, however, is how generative tools have opened music creation to consumers who would never have touched a DAW.

Stem separation has become a foundational DJ and producer tool. Fans can now pull vocals, drums or melodies out of almost any record. Furthermore, generative platforms let users build original tracks from text prompts. Both categories fuel the 651% surge.

The 63 million monthly active user figure places AI music tools in scale with mid-tier streaming services. Still, the revenue per user remains low compared to subscription music. That suggests significant pricing headroom as features mature.

In short, the data confirms that AI is reshaping electronic music production at speed. Finally, the IMS authors flag this as a step change for the creator economy, with dance music sitting at the front of the curve given its production-first culture. Full report via IMS.