> never explicitly mentioned law.

The fellow said "It should be required to include the AI model as a featured artist"; the common means is laws and regulations, like in the food industry.

> They could actually differentiate themselves...

Instead, it will go in exactly the opposite direction: the record monopolists will use AI themselves to further improve their already high margins. They have already secured the technology for this, if you have been following the news about Suno and Udio.