The AI-Driven Shift in Online News: A Threat to Publishers

As Google’s AI Overviews and chatbots change the search landscape, news outlets face a crisis of traffic referrals, content theft, and a loss of control over their own content

A digital globe showcasing various global news sources, highlighting the interconnectedness of journalism in the AI-driven era.

The online news industry is facing a crisis of unprecedented proportions as Google’s shift to artificial intelligence (AI) continues to upend the traditional model of online journalism. With AI Overviews and chatbots now dominating the search results page, publishers are seeing a significant decline in traffic referrals and are struggling to adapt to the new landscape.

According to Jon Slade, chief executive of the Financial Times, his website has seen a “pretty sudden and sustained” decline of 25% to 30% in traffic to its articles from readers arriving via internet search engines. This decline is attributed to Google’s AI Overviews, which summarize search results and often negate the need for users to click on individual articles. The Financial Times is not alone in this struggle, with other major news outlets such as the Daily Mail and the Guardian also reporting significant declines in traffic referrals.

Publishers are fighting back against Google’s AI-driven changes, with many arguing that the tech giant is failing to provide adequate transparency and traffic statistics from AI Overview and AI Mode. The owner of the Daily Mail revealed in its submission to the Competition and Markets Authority’s consultation on Google’s search services that AI Overviews have fueled a drop in click-through traffic to its sites by as much as 89%. This loss of traffic is compounded by the fact that Google’s AI Mode, a chatbot-style interface that answers queries directly, is also reducing the need for users to click on individual articles.

The impact of AI on the accuracy of news reporting is also a growing concern. While Google has improved the quality of its overviews since earlier iterations, problems with “hallucinations” – where AI presents incorrect or fabricated information as fact – remain. In January, Apple was forced to update an AI feature that issued untrue summaries of BBC news alerts, stamped with the corporation’s logo. This incident highlights the potential risks of relying on AI-driven content, and the need for publishers to prioritize accuracy and fact-checking in their reporting.

Publishers are not just fighting against Google’s AI-driven changes, but also against AI companies that are seeking to plunder their content to train their large language models. The creative industry is lobbying the government to ensure that proposed legislation does not allow AI firms to use copyright-protected work without permission. Some publishers have struck bilateral licensing deals with AI companies, while others, such as the BBC, have taken action against AI companies alleging copyright theft.

The shift to AI-driven news is also having a profound impact on the way publishers create and distribute content. As AI-powered chatbots and virtual assistants become increasingly prevalent, publishers are being forced to adapt their content to meet the changing needs of their audience. This has led to a focus on creating more personalized and interactive content, as well as investing in AI-powered tools that can help to analyze and optimize content for maximum impact.

However, the shift to AI-driven news is not without its challenges, and publishers are struggling to adapt to the new landscape. Many are facing significant declines in revenue, as the shift to AI-driven content reduces the need for users to click on individual articles. This has led to a growing concern about the sustainability of the online news industry, and the need for publishers to find new and innovative ways to generate revenue in a rapidly changing market.

As the battle for control of the online news landscape continues, publishers are implementing AI tools into newsrooms and creating their own query-answering tools. The Washington Post and the FT have launched their own AI-powered chatbots, Climate Answers and Ask FT, that source results only from their own content. However, the shift to AI-driven news is not without its challenges, and publishers are struggling to adapt to the new landscape.