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YouTube (GOOGL) Tests AI Music Hosts for Premium Users, Taking Aim at Spotify (SPOT)

YouTube (GOOGL) Tests AI Music Hosts for Premium Users, Taking Aim at Spotify (SPOT)

Alphabet’s YouTube (GOOGL) (GOOG) has launched a new experiment that puts AI at the center of its music app. The program, called YouTube Labs, will serve as a space to test AI tools. The first feature is an AI music host named Beyond the Beat. It adds commentary, trivia, and short stories during radio mixes and playlists on YouTube Music.

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The AI host shows up as a sparkle icon near the Like and Comment buttons. Listeners can turn it on or off and even snooze it for one hour or one day. In practice, the commentary comes in every five songs instead of after each track. The company says this helps avoid too much interruption. YouTube also notes that errors may occur in the commentary since the tool is still in early stages.

Competition With Spotify

The launch comes more than two years after Spotify (SPOT) rolled out its AI DJ feature. Spotify has said that usage of that tool nearly doubled in the past year. As a result, YouTube’s move appears to be a clear play to capture more engagement in the same space. Streaming firms have been adding AI personalization tools to increase the time spent on their platforms.

Access to YouTube Labs will be limited for now. Only a small group of users in the U.S. can join, with YouTube Premium members given priority. This mirrors YouTube’s broader use of its Premium tier as a testing ground for new features. Earlier this year, it introduced Premium-only features such as high-quality audio, faster playback speeds, and smart jump controls on TVs and consoles.

Early User Notes

Reports from early testers suggest the AI host is helpful but not perfect. Some users have praised the summaries while others have flagged moments of static noise. Still, the feature appears designed to add light context without breaking the flow of a playlist.

For investors, the step signals another front in the streaming race. YouTube is looking to keep its user base tied to Premium subscriptions while also competing with rivals in AI music. Spotify has shown that engagement can rise when AI is put at the center of listening. YouTube now wants to see if it can capture the same effect.

Is GOOGL Stock a Buy?

On the Street, Google scores a Strong Buy consensus, with an average GOOGL stock price target of $243.53. This implies a 1.22% downside from the current price.

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