Keelan's teacher Sinead Oakes said AI had prompted his creativity, not replaced it.
She said she had to "retrain" her mind to ensure AI was used for the benefit of her pupils.
Danielle Perry said that while Keelan is using AI to create music, other pupils were using it to research and create presentations.
But she said that having a plan and a rationale, and a clear idea of how AI could help pupils was key.
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Established by Big Society Capital and the Northern Rock Foundation, the North East Social Investment Company is soon to be launched for lending by mid-2014.