So-called "streaming farms" have been a reality for years, and can be used for boosting royalties for both real and "fake" artists. Depending on the relationship between the offender and the streaming platform, this will either be a violation of the terms, or simply fraud.
I am more interested in the "AI" aspect, which does not seem to be explored that much in the coverage of the current case. There are several examples of groups/artists which are presented on platforms as real artists (e.g. a "verified" artist on Spotify), but which are quite evidently computer-generated music.
Not sure that I want to give them more exposure, but try searching for a band which is called [the Capital of Sweden (replace with actual name)] Jazz Quartet. They have hundreds of albums out, almost each and every of them on a different label (presumably to add confusion). The earliest albums seemed to be recorded by actual (though mediocre) musicians, but for years their output has been fully computerized.