Spotify's biggest enemy are the record labels that they have to pay license fees to. Slowly ramp up the AI slop while ramping down the label-owned material and hope subscribers don't notice. It's a play that worked for Netflix, which used to have every major show a decade ago and is now majority mass-produced Netflix Original slop.
I noticed music in TV shows is AI slop so they don't have to pay licensing fees lately as well. I was watching Unsolved the series about the Notorious BIG and Tupac murders a few weeks ago and in one of the club scenes a "Biggie" song that I'd never heard of was playing in the background, I wasn't familiar with that song so I googled it and it was an ai Biggie inspired recreation, not one of his actual songs.
It is sad, but not surprising, that the primary driver behind AI is the "Do everything as cheap as possible" mindset - not for innovation, especially not for quality.