Can the media survive Google’s new AI search?
It could be the beginning of the end of the open web.
Google dropped a bombshell at their annual I/O conference last week, unveiling their latest AI innovation—a search engine that answers your questions directly without pushing you to other sites. Dubbed the Search Generative Experience (SGE), the tech could seriously shake up the online media landscape. If it works like Google says it will, we’re in for a sea change. Here’s why.
Liz Reid, Google’s VP of Search, made the announcement: “Google will do the research for you.” SGE is set to swap out traditional search results for AI-generated answers that scrape info from the internet, pushing links to the original content down to the bottom of the page.
What does this mean for you? Less choice in what you read. Reid showed off a search for the best yoga studio in Boston, where Google’s AI used reviews to make recommendations, sidelining local columnists or bloggers who’d usually weigh in.
Why Google's AI search could cripple revenue
Tech research firm Gartner predicts that web traffic from search engines will drop 25% by 2026. Michael Sanchez, co-founder and CEO of Raptive, told The Washington Post this shift will do "tremendous damage.”
“What was already not a level playing field… could tip its way to where the open internet starts to become in danger of surviving for the long term,” he said.
A revenue plunge like this could force already struggling media companies to shut down, slashing jobs and shrinking the diversity of news sources. The irony? AI search might end up eating the very ecosystem it feeds on for information. Content creators, advertisers, and marketers will feel the squeeze too.
SGE could revolutionize how we get our news, but it might also trap us in info bubbles. If Google (and probably OpenAI) spoon-feeds you all your content, you’ll miss out on different perspectives. Do you really want tech giants curating what you read and watch instead of journalists and editors?
The echo chamber dilemma
This concentration of news delivery raises red flags, especially for Canada’s struggling news organizations. The few that survive could gain monopolistic power. The impact on democracy and public discourse? Massive. Echo chambers like these can strengthen biases and limit exposure to a range of well-researched views. Experts like Rasmus Kleis Nielsen from the Reuters Institute warn this could lead to a less informed, more polarized public.
Regulatory bodies like the Canadian Radio-television and Telecommunications Commission (CRTC) will play a crucial role in shaping our future info landscape.
Can subscriptions save us?
While Google’s AI-powered search strategy promises user convenience, it’s a major headache for media revenue. Media companies will have to hustle for new revenue streams. Subscription models for newsletters and podcasts might keep some cash flowing, but it’s small potatoes compared to current ad-based models.
The outlets that thrive will be those producing unique, high-quality content, using data to understand and better engage their audiences. Fingers crossed that already financially stretched media and entertainment companies can hang in there.
This week’s disruptions
👋🏼 OpenAI co-founder who had key role in attempted firing of Sam Altman departs. (The Guardian) Co-founder and chief scientist of OpenAI Ilya Sutskever announced his resignation last week. Sutskever, a key figure in the dramatic firing and rehiring of OpenAI's CEO Sam Altman last year, shared his decision on X, ending a nearly decade-long tenure that saw the rise of groundbreaking innovations like ChatGPT.
🔍 TikTok is testing AI-generated search results (The Verge) TikTok is testing a new feature called "search highlights" that uses AI to provide short summaries of your search queries, like recipe ideas or the best laptops for 2024. This is Tik Tok’s latest attempt to become a one-stop shop for information, potentially changing how younger users search for things online.
🎧 Sony Music Group warns more than 700 companies against using its content to train AI (NBC News) Sony Music Group sent warnings to over 700 companies developing AI, saying they can't use Sony Music's content (songs, lyrics, etc.) to train AI models without permission. Sony Music argues it infringes on artists’ rights. The move comes amid growing concerns in the music industry about AI tech that can copy and even generate music-like content.