From mid-September, the platform's users will begin to see the AI Persona badge on accounts which do not represent a real artist, and music from those artists will be removed from "any editorial or algorithmic recommendations".
Spotify said users may still see AI Persona artists in their own personal recommendations if they already follow artists in the category on the platform.
A statement read: "Listeners have been clear in telling us that they don't like seeing an artist profile that seems human, only to find out that the persona is AI-generated.
"That's why, starting mid-September, you'll begin to see an AI Persona badge on some artist profiles.
"The badge signals to listeners that an artist's identity may be AI-generated and does not represent a real person. Alongside artist profiles that self-disclose as AI Personas, we will also start applying badges to relevant profiles."
The platform said it wants to be "the most transparent and trustworthy place to listen to music", and added that its programming is "focused on elevating music from authentic artists building careers in music".
Before the labels are added to accounts, Spotify has said it will give the creators of AI-generated accounts the opportunity to self-disclose.
An appeals process will be established for artists who feel the tag does not apply to them, and users will also be able to flag accounts they are suspicious of to the streaming service's team.
The statement added: "We know the music ecosystem is evolving, and so will our approach. We'll continue to adapt as the landscape changes and as we learn from artists, listeners, and industry partners."
The AI Persona tag does not apply to human artists who have used AI in the creation of their music, for this Spotify has the AI Credits function, with artists able to disclose to listeners how they used AI in their music creation.
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