Google (NASDAQ:GOOGL) intends to renegotiate future payments to local news organisations in response to the evolving landscape of media consumption and the integration of artificial intelligence (AI) into content creation.
The announcement of the decision by Google's Australian head, Melanie Silva, marks a significant moment, particularly as Facebook (NASDAQ:META)'s owner Meta plans to cease annual payments of around US$70 million to news publishers.
Silva highlighted the ongoing nature of these negotiations and expressed Google's commitment to complying with the law, describing Australia's bargaining code as "quite innovative".
However, Silva noted that discussions around compensating for content used to train AI models — such as generative AI that produces new images, text and video — are still in their infancy. She emphasised the need for regulations that foster commercial opportunities rather than impede the technology's development.
The use of AI in business picked up pace in late 2022 with the launch of ChatGPT.
Accenture (NYSE:ACN) chief AI officer Lan Guan observed that ChatGPT’s user-friendly interface brought AI to the attention of non-tech experts. Accenture has built an internal sales response tool to make initial responses to some client questions, as most companies are now at the early stage of experimenting with AI.
The discourse on AI compensation is gaining international attention, with companies like Apple (NASDAQ:AAPL) and media giants including Condé Nast and NBC News entering early discussions. Meanwhile, The New York Times adopts a more confrontational stance, suing OpenAI and Microsoft (NASDAQ:MSFT) for using its content without compensation.
Legal expert Gavin Smith, speaking alongside Silva, predicted that the industry would eventually see commercial agreements to compensate content creators for their contribution to AI reliability.
He warned of the potential adverse effects on creative industries without such compensation and suggested government intervention might be necessary.