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Get paid or sue? How the news business is combating the threat of AI

BBG News

As a seasoned journalist who has spent decades covering the evolving media landscape, I’ve witnessed firsthand how technology companies like OpenAI and Microsoft have disrupted the journalism industry with their AI-powered chatbots and news aggregators. These tools can often access and disseminate information from publications without obtaining proper permissions or providing fair compensation, leading to significant financial losses for small and medium-sized outlets.

To examine the supposed advanced search outcomes generated by Google’s artificial intelligence experiment, journalist Javier Cabral posed a query related to his area of expertise: the coffee at Long Beach’s renowned bakery, Gusto Bread.

As I quickly searched for information about a local bakery using Google’s AI, I was impressed by how swiftly it summarized the essential details in just a few sentences and bullet points. However, during my investigation as a movie critic and editor-in-chief of L.A. Taco, I stumbled upon an unsettling discovery. The summary seemed eerily familiar, almost as if it had been taken from an article I wrote last year about the very same bakery. I recall dedicating at least five laborious days to crafting a feature piece on this artisanal establishment, even arriving at dawn to capture the intricacies of their bread-making process.

As Cabral saw it, the search giant’s AI was ripping him off.

“According to Cabral’s statement in an interview, the typical consumer who merely intends to take a look is unlikely to read the article further. Upon reflection, this realization can be quite infuriating.”

As a movie critic, I’ve seen firsthand how the evolution of artificial intelligence poses yet another daunting challenge for establishments like Cabral’s news organization. We’re all grappling with this shifting media landscape, where staying afloat becomes an increasingly uphill battle.

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1. In 2020, Javier Cabral, editor of L.A. Taco, was captured on camera in an alleyway behind the Figueroa Theatre in Los Angeles. (Photograph by Mariah Tauger, Los Angeles Times)

As a film enthusiast, I’ve noticed how challenging it has become for news outlets to maintain subscribers and secure advertising revenue in today’s digital world. Social media giants like Facebook used to be reliable partners in reaching vast audiences with our content, but they’ve mostly shifted their focus away from news. However, the emergence of advanced AI technologies, such as those developed by companies including Google, Microsoft, and OpenAI, has publishers worried about potentially devastating repercussions. We fear that these digital programs might start automatically extracting information from our archives and providing it to audiences for free, leaving us with little to no control over our content or revenue streams.

“Danielle Coffey, president and CEO of the News/Media Alliance, expressed concern over an unfair situation. Her organization represents newspapers such as the New York Times and Los Angeles Times. She warned that if competitors use their content to undercut them, there might not be a profitable business model left for them.”

Leading tech firms assert that their AI technologies do not violate copyrights but instead help attract readers to publishing industries.

Google’s statement explains that they create AI-generated summaries, named Overviews, to offer users a succinct and comprehensive understanding of various webpages related to their search queries. These summaries come accompanied by provided links for further exploration.

Publishers can benefit significantly from AI and machine learning in conducting research or suggesting articles to readers. However, for some news outlets, the rise of AI is another way tech giants act as intermediaries between content creators and audiences, ultimately reaping the rewards.

Over the last two decades, tech giants have held significant control over news distribution methods, requiring it to be disseminated through search engines or social media. Unfortunately, this arrangement has brought about major challenges for most news organizations. (Gabriel Kahn, USC Annenberg School for Communication and Journalism professor)

In response to the issue at hand, various news organizations have adopted distinct strategies. For instance, the Associated Press, Financial Times, News Corp. (proprietor of the Wall Street Journal and Dow Jones), and Vox Media, among others, have entered into agreements that enable OpenAI to utilize their content in return for remuneration.

Others have taken their fights to court.

In December, The New York Times filed a lawsuit against OpenAI and Microsoft, claiming that they had utilized the newspaper’s articles without permission to train their digital assistants and shared paywalled content with their users, denying The New York Times compensation for these actions. The estimated damage from these incidents is reportedly in the billions.

Last month, Forbes sent a legal warning to AI start-up Perplexity, alleging plagiarism. In response, Perplexity stated that they have revised their method of citing sources and fine-tuned the instructions given to their artificial intelligence models.

The company said it has been developing a revenue sharing program with publishers.

As a movie buff and avid reader of The New York Times, I can tell you that this publication is not just fighting for compensation for its current content in their ongoing lawsuit against AI. Instead, it’s about safeguarding the very future of journalism as we know it. By taking a stand today, they aim to ensure the continued relevance and importance of human journalists in an increasingly automated world.

“A decrease in revenue for news organizations means they’ll have fewer journalists to work on detailed, significant stories, increasing the likelihood that such stories won’t see the light of day. The consequences for society would be substantial as less journalism is generated.”

OpenAI stated that the New York Times’ lawsuit lacked validity and they haven’t been able to recreate instances provided by the newspaper where ChatGPT had repeated paywalled articles. The organization noted that publishers have the option to prevent their content from being utilized in training AI models. Microsoft declined to comment on the matter when approached.

According to Davida Brook, a partner at law firm Susman Godfrey representing The New York Times, Microsoft and OpenAI have misunderstood the situation. “Creators such as The New York Times shouldn’t be forced to opt out from having their works used,” she explained in a statement.

I’ve worked in the journalism industry for over a decade now, and I’ve seen my fair share of legal battles between media outlets and tech companies. The latest development in this ongoing saga is particularly troubling to me. In April, eight publications owned by Alden Global Capital accused OpenAI and Microsoft of using and providing information from their news stories without compensation.

In certain instances, OpenAI’s chat tool inaccurately attributed false information to specific publications. Frank Pine, MediaNews Group and Tribune Publishing’s executive editor, pointed this out in a statement. For instance, OpenAI reportedly stated that the Mercury News endorsed the use of disinfectants to combat COVID-19 and that the Denver Post had published research indicating smoking alleviates asthma. However, neither publication has made such statements.

When our journalists aren’t providing exact reports, some people falsely attribute incorrect information to our news sources, harming our reputation. (Pine’s statement paraphrased)

As a film enthusiast, I wasn’t privy to Alden’s apprehensions beforehand. However, I can share that OpenAI is currently immersed in productive collaborations with numerous news organizations globally. We’re not only exploring potential opportunities but also engaging in meaningful dialogues and addressing any concerns raised. Our goal is to offer viable solutions that benefit everyone involved.

I’m excited about the latest collaboration between OpenAI and News Corp. In this arrangement, OpenAI gets to utilize News Corp’s vast collection of content from outlets like the Wall Street Journal, New York Post, and international publications in the UK and Australia. This partnership enables OpenAI’s tools to respond to user queries with relevant information and train its AI models using this rich source of data. The financial details, reportedly exceeding $250 million over a five-year period according to the Wall Street Journal (sources unnamed), were not confirmed by either party.

“This significant agreement marks the start, not the finish, of a vibrant partnership between us,” Robert Thomson, CEO of News Corp., expressed in a statement. “Together, we’re dedicated to generating and supplying knowledge and honesty in real-time.”

I’m passionate about fostering a prosperous community of publishers and content creators, and I believe we can achieve this by simplifying the process of discovering their work through our innovative tools. – OpenAI (paraphrased)

OpenAI has made agreements with certain publishers; however, there is ongoing debate in the tech sector about their right to utilize online content for training AI models and retrieving related information under the “fair use” principle. This principle permits restricted usage of copyrighted material without securing consent from the copyright owner.

According to Chris MacKenzie, spokesperson for Chamber of Progress, which represents companies such as Google and Meta: “As long as these businesses aren’t directly copying news sites’ content word for word, they are acting lawfully in providing this information to users. The fact that no one holds the copyright on facts is a crucial point to keep in mind.”

Smaller publications like L.A. Taco face unique challenges when it comes to chatbots using their content. While they acknowledge the concept of fair use, outlets such as the New York Times strongly dispute these claims. They argue that in certain instances, these chatbots actually reproduce their meticulously researched and fact-checked articles, profiting from their hard work without permission. For small publications, the prospect of legal action against OpenAI or developing their own AI platforms is financially unfeasible.

Nestled in the heart of Los Angeles’ Chinatown, L.A. Taco runs with a team of six – four full-time employees and two part-timers. The organization is budget-conscious, with its publisher choosing to forego a salary. Most revenue comes from membership fees. However, if individuals are accessing the news directly from search engines rather than paying for L.A. Taco’s articles, it poses a significant challenge.

An alternative method to address big tech’s impact on the journalism industry is through legislation. The California News Publishers Association, which includes the Los Angeles Times among its members, supports a California bill called the Journalism Preservation Act. This proposed law would require digital advertising giants to compensate news outlets for accessing their articles, either via a fixed fee or arbitration determination. Approximately 70% of the funds obtained by publishers must be allocated towards journalists’ salaries. Another legislative option under consideration involves taxing large tech platforms for user data collection and utilizing the revenue to finance news organizations through tax credits for hiring full-time journalists.

“According to USC’s Kahn, the solution involves some form of regulation due to Congress’ inability to pass laws. In essence, this leaves these platforms with minimal restrictions and few repercussions for their actions.”

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2024-07-26 14:31

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