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Music streaming platform Spotify is testing prompt-based AI playlists feature that will help users create their favourite playlists using AI technology and prompts.

The “AI playlists” feature on Spotify was spotted by some users and the platform confirmed the test to TechCrunch.

Spotify, however, but didn’t divulge further details about the AI technology.

“We routinely conduct a number of tests. Some of those tests end up paving the path for our broader experience and others serve only as an important learning,” a Spotify spokesperson was quoted as saying in the report.

“We don’t have anything further to share at this time,” the spokesperson added.

The feature’s description reads “Turn your ideas into playlists using AI” and says that it’s currently only available in English.

After selecting the option, users are shown a screen where they can type their prompt into an AI chatbot-style box, or browse through a list of suggested prompts to get started.

Once selected the prompt, the AI chatbot responds “Processing your request…” and then presents a sample playlist, the report mentioned.

Meanwhile, Spotify last week announced to eliminate about 17 per cent of its workforce across the company as it looks to become "both productive and efficient".

This was Spotify's third round of layoffs this year. In June, the company sacked 200 employees, or 2 per cent of its workforce, from its podcast division and in January, it slashed 6 per cent of its workforce, or about 600 staffers.

Spotify's chief financial officer (CFO) Paul Vogel is also leaving the company following the latest round of layoffs