AI and media companies engage in groundbreaking negotiations for news content

The world’s largest tech companies are engaging in discussions with prominent media outlets to establish groundbreaking agreements regarding the use of news content for training artificial intelligence technology. OpenAI, Google, Microsoft, and Adobe have recently met with news executives to address concerns related to copyright issues surrounding their AI products like text chatbots and image generators. News Corp, Axel Springer, The New York Times, and The Guardian are among the publishers that have been in talks with these tech companies. The discussions, although still in the early stages, have explored the possibility of compensating media organizations through a subscription-style fee in exchange for their content, which would aid in the development of technologies underlying chatbots like OpenAI’s ChatGPT and Google’s Bard.

These negotiations come as media groups express worries about the impact of AI on the industry and concerns about OpenAI and Google using their content without proper agreements in place. Artists, photo agencies, and coders have taken legal action against companies like Stability AI and OpenAI, alleging contractual and copyright infringement. News Corp CEO Robert Thomson, speaking at a media conference, expressed his discontent, stating that the industry’s collective intellectual property is at risk and emphasizing the need for compensation. He warned that AI is designed to eliminate the need for readers to visit journalism websites, posing a serious threat to journalism.

A potential agreement resulting from these discussions would establish a precedent for news organizations worldwide in their interactions with generative AI companies. The Financial Times, which is also engaged in talks on the matter, emphasized the importance of copyright for publishers’ business models and the need for productive dialogue with relevant companies. Media industry executives aim to avoid the mistakes made during the early days of the internet when many publishers offered articles online for free, ultimately undermining their own business models. Tech giants like Google and Facebook later utilized this information to build multibillion-dollar online advertising businesses. With the growing popularity of generative AI, the news industry has become increasingly concerned due to the technology’s ability to generate convincingly human-like text. Google recently introduced a generative search function that displays an AI-written information box above the traditional web links format. While currently launched in the US, it is preparing for a global release.

Present discussions are addressing the establishment of a pricing model for news content used as training data for AI models. Publishers have considered figures ranging from $5 million to $20 million per year, according to an industry executive. Mathias Döpfner, CEO of Axel Springer, proposed adopting a “quantitative” model similar to the one used by the music industry, in which radio stations, nightclubs, and streaming services pay record labels for each play of a track. However, this would require AI companies to disclose their usage of media content, which they are currently not doing. Döpfner suggested that an annual agreement offering unlimited use of media content would be a secondary option, as it would be more challenging for small regional or local news outlets to benefit from such a model. He stressed the need for a collective solution, stating that collaboration is necessary.

Google has taken the lead in negotiations with UK news outlets, holding meetings with The Guardian and NewsUK. The Alphabet-owned company has longstanding partnerships with several media organizations to optimize their content for its search engine. The company has utilized this data to train its large language models. Although financial discussions are ongoing, newspaper executives have acknowledged Google’s acceptance of the need for payment. However, actual figures have not been discussed yet, marking this stage as an initial step. Google declined to comment on the financial aspect, but mentioned that it is engaged in ongoing conversations with news outlets of all sizes in the US, UK, and Europe. The company also stated that it currently trains its AI on publicly available information, which could include paywalled websites. Additionally, Google is considering ways to provide publishers with more control over whether their content is utilized for training AI models, similar to the existing option for websites to opt out of appearing in search results.

OpenAI’s CEO, Sam Altman, has met with News Corp and The New York Times, according to sources familiar with the discussions. OpenAI confirmed that talks have taken place with publishers and publishing associations worldwide on potential collaborations. Publishing leaders acknowledge the challenges of developing a financial model for the use of news content in AI training, as tech companies have launched these products without consulting the industry. One major US publisher executive expressed frustration over the lack of prior discussion and transparency, making it difficult to secure compensation afterwards. Media analyst Claire Enders stated that negotiations are currently complex, given the diverse approaches of different organizations, making it unlikely to establish a single commercial arrangement for media groups. She also remarked that chatbots would not be reliable tools if trained primarily using text containing misogyny and racism.

The technology companies investing in AI are focused on its utility in enhancing newsrooms and journalism, and are willing to pay substantial amounts to maintain their relationships with the industry. Microsoft’s Vice-Chair Brad Smith stated that the company is in the early stages of conversations with media and publishers, primarily aiming to explore how they can use AI to generate more revenue. Adobe’s CEO, Shantanu Narayen, revealed discussions with Disney, Sky, and the UK’s Daily Telegraph concerning the development of customized models for using their generative AI for images. Adobe’s model is trained on pictures from its own stock image library, openly licensed content, and public domain material. Narayen mentioned that pricing and agreements would depend on individual companies, but clients could incorporate their proprietary content into the tool.

Axel Springer’s Döpfner expressed optimism that agreements will be reached, highlighting the faster recognition of the challenges by both media organizations and policymakers compared to previous major waves of disruption. AI companies are aware of impending regulations and fear the consequences, which motivates them to work towards finding a solution for a healthy ecosystem. Döpfner stressed the importance of intellectual property creation, as without the incentive, artificial intelligence would become artificial stupidity.

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