If there's a market, then a competitor app with different policies will likely arise.

The other aspect that's missing from the discussion here is LEGAL. If Tidal is making money from stolen music -- although arguably they still are by offering it on a subscription basis -- then that opens them up to litigation. From that perspective, this may double both as risk-mitigation and also a marketing opportunity for them, would love an attorney to weigh in there.

(From the comments here, Spotify is the market leader and already pays out for AI generated music. But I can't say that independently.)

Then support your favorite AI music creators by going to their gigs.. oh wait

I appreciate a platform for art to at least attempt at maintaining the semblance of it being for humans. If AI 'artists' disagree, they can boycott Tidal and not post their songs there. For me that is a feature that I actually really value, because AI slop making Spotify money has materially worsened my experience in that platform.