Digital news publishers face AI threat over ad revenue and IP rights

New Delhi: Digital news platforms, already battling for ad spend against giants like Google, Meta, and e-tailers, now face a fresh rival: AI tools like ChatGPT and Gemini.

AI is only as smart as the data it feeds on, and a lot of that comes from online news content—even paywalled articles. With no clear picture of how much publishers’ work is used, media companies are keeping a sharp eye on AI firms and pushing for government action on copyright and fair compensation.

The issue extends beyond copyright—Gartner predicts AI chatbots could slash search engine use by 25% by 2026, posing a serious threat to media traffic and revenue streams.

Information and Broadcasting Minister Ashwini Vaishnaw showed urgency in addressing the challenges posed by AI systems during his National Press Day speech in November. 

He emphasised the need to safeguard the intellectual property (IP) rights of original creators. 

“AI models today can generate creative content based on vast datasets they are trained on. But what happens to the rights and recognition of the original creators who contributed to that data? Are they being compensated or acknowledged for their work?” the minister questioned. 

“This is not just an economic issue; it is an ethical issue too," he added. 

Hailing Vaishnaw’s comments, Sujata Gupta, Secretary General of DNPA (Digital News Publishers Association), said, “Digital news media platforms are now looking towards the government to take decisive action, shielding news platforms from the disruptive challenges posed by AI-driven platforms.”

She also said that these interactive platforms serve as surrogate news sources, disseminating information often rooted in Western perceptions of Indian reality. 

“Such representations may not reflect the true essence of Indian narratives but rather filter content through a lens that can distort or misrepresent critical socio-political contexts. The proliferation of AI-generated content raises questions about the implications of foreign narratives on domestic discourse and subverts the rationale of FDI regulations in the news media sector that are designed to protect Indian media interests.”

While globally, The New York Times and News Corp. have legally sought billions in damages for the unauthorised use of their content, in India, ANI, the news agency, is the first company to file a copyright infringement lawsuit against OpenAI for using its content without permission to train its AI models.

In the past, even The New York Times has sued OpenAI and Perplexity, seeking billions in damages for the unauthorised use of its content. 

Similarly, News Corp, the parent company of major media outlets such as The Wall Street Journal and the New York Post, filed a lawsuit against Perplexity for allegedly infringing on copyrighted content. 

Having said that, not all publishers are opposing AI bots. For example, in July 2023, The Associated Press struck a deal with OpenAI to license its archives for ChatGPT training. 

In May 2024, News Corp signed a five-year deal with OpenAI, worth $250 million, to allow ChatGPT to use its content with a delay. 

Axel Springer also partnered with OpenAI, enabling ChatGPT to summarise articles from its publications like Politico and Business Insider, including paywalled content, with attribution. 

The impact on traffic and subscriptions remains unclear, revealing the ongoing tension between AI and journalism. However, these exclusive deals may overlook smaller and local publishers, potentially hindering the development of sustainable business models in favour of one-off licensing agreements. 

Google's AI Overviews, aka summaries, which provide direct answers to search queries, too raise concerns that users may bypass clicking on links to publishers' websites, potentially leading to a significant drop in web traffic.

Commenting on how it impacts news platforms’ businesses, Sanjay Sidhwani, CEO of Indian Express Digital Media, told BestMediaInfo.com, “It's still early to determine the full impact because today's search traffic is split between organic search (50%) and discover. Understanding the exact impact is challenging since it's hard to track how often content appears without clicks. Currently, Google Overview is being tested on selective content in a pilot stage. Once it's scaled up, we will better understand the impact and then figure out how to address it commercially.”

He added, “When it comes to Google AI Overviews, news and politics are not part of the overview presentation layer, so we need to view the impact from a different perspective. Content like feature articles or soft content, such as kitchen recipes, is more likely to be affected than core news. These types of content bring in traffic but are not considered news per se. Therefore, it is crucial to monitor and assess the impact on such content.”

On safeguarding publishers’ interest in the absence of any regulatory intervention, a DNPA member told BestMediaInfo.com that they are in ongoing discussions with stakeholders to monitor how things will unfold. 

The person added, “Most Indian publishers, particularly members of the DNPA, have blocked AI bots from crawling their content. However, they’ve allowed certain bots, including those from Google and Microsoft, to access their material.”

A smaller publisher, speaking anonymously, remarked, “Private, behind-the-scenes deals with major news outlets won’t replace the need for public policy. They won’t save local news from the instability created by corporations that bypass the law and hold excessive market power.”

Since these tech giants are basically the backbone of today’s media landscape and have used journalism to add value to their empires, it’s high time policymakers step in. They need to make sure news organisations get their fair share and that big corporations don’t just play the game—they play fair.

Gupta of DNPA concluded that establishing regulations to govern AI technologies used in news dissemination could create a balanced ecosystem where both innovation and journalistic integrity coexist. 

“By prioritising transparency, accountability, and support for local digital news media, the government can play a transformative role in securing the future of digital news in India,” she said.