Even Spotify is smart enough to know that people will leave them if this ever happens.

No, that's the end game here. People already mostly have parasocial relationships with artists. There's already famous AI personality Instagrams and Vtubers. With the advent of Generative AI video like Sora and Generative AI music like Suno, people will find their perfect generative AI niche and follow an artist story/interaction that they can't even tell is real or not. Generative AI will create millions of niches, it will hit that spot.

You might just be spot-on.

Some generative stuff will be more discernible than others.

The ones that don't even try to emulate the full experience of having a real artist involved will have a lot less friction.

And it's not like you're going to have a small niche audience that settles for artificial music, no there will be a niche that prefers it.

The size of that niche right now has nowhere to go but up.

I find it really hard to imagine people following famous AI personalities as much as real musicians if they know that the AI are AI. Humans are social creatures.

I guess at some point there will be a popular "musician" who is relieved to be an algorithm, and we'll see what happens.

We're already seeing an explosion of people doing AI chatbot therapy and AI relationships. "Human-ness" factoring into someone's enjoyment of music is already below well below both of those.