It's more than that. genAI can't create music out of the ether. It has to be trained first, meaning it basically "listens" to a shit ton of music before it can generate any music. That means:

1. Its music will be 100% derivative with no true creativity at all. Do you just want a mishmash of all pre-existing music forever?

2. most importantly, the artists whose music the genAI was trained on were likely not compensated at all for that training. So not only is the music ecosystem going to be inundated with AI slop, but we've stolen from working musicians to do it.

What would be your motivator to pay human artists? Why sign any?

I mean, the internet has given artists a way to spread their works and profit off them without any major record labels. So what artists will lose by that are exploitative companies whose only benefit is that your music will be sold by major retailers as physical CDs or Downloads.