AI-generated music works by training artificial intelligence algorithms on vast amounts of existing musical data. These algorithms analyze patterns, structures, and styles in the data to learn the rules and characteristics of music. Once trained, the AI can generate original compositions by combining and manipulating these learned patterns, creating melodies, harmonies, rhythms, and even entire songs. AI-generated music can be customized and fine-tuned based on desired inputs, such as genre, mood, or specific musical elements, providing a novel way to produce music with minimal human intervention.