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Australian music is finding its way into more corners of the world than ever before, data from music streaming titan Spotify shows.

The company's latest Global Impact Report, launched in Sydney on Wednesday, highlights a 37 per cent rise in overseas streams of Aussie music since March 2021.

While the US and UK remain the top destinations for overseas listening, local acts are finding new joy in different markets such as the Philippines and Brazil.

Spotify says these emerging markets are characterised by young populations eager for new content, making them the perfect fit for ambitious Australian acts.

"What matters to an artist is developing their international audience, because it's important for touring and it allows them to have a broader fan base,"  Spotify's global head of editorial Sulinna Ong said.

Many artists have found it difficult to sustain themselves financially on streaming royalties alone since physical record sales have declined and touring has become a crucial part of their income.

Ms Ong insisted Spotify still relied on human taste to curate its playlists, despite the rise of artificial intelligence to determine how people find new music.

"We see AI as a tool alongside human creativity, but not a replacement," she said.

"AI can't go to the club ... and understand cultural context."

The report paints a rosy picture of how Aussie music travels beyond our shores, but research closer to home indicates many local artists struggle to break through domestically because of how AI emphasises certain acts.

Music Australia research published in June found engagement with Australian music was declining across the general population and LG인터넷가입 international artists were being prioritised by audiences over local talent.

Ms Ong pushed back against the idea of quotas to promote domestic acts, saying it would limit the international appeal of an artist on their platform.

"(Artists should) take advantage of the fact that the world is connected. You have an internet connection, you've got social media," she said.

"The barrier to entry into a new market is as low as it has ever been."