The use of AI-generated or enhanced content could be a serious opportunity for the Australian media to deliver more relevant advertising and free talent for more intensive creative work, according to market analysts.
But there are risks ahead as well. New players could create their own media portal populated with AI-written content, potentially undercutting premium players such as News Corp, Nine Entertainmnet and Seven West Media.
A group of Australian analysts from Morgan Stanley recently attended the group’s conference in San Francisco. AI and ChatGPT dominated discussion.
“One of the lessons we have learned following this sector for a long time … is when new technologies emerge investors need to pay very close attention,” the analysts wrote in a note to clients.
“Why?... because when new tech happens ... it can change both consumer and enterprise behaviours, which in turn can potentially change TAMs (total addressable market), market shares and margins and returns.
“It's why we are watching closely.”
AI could offer readers of media platforms a more personalised experience and drive more customised/relevant advertising.
News Corp has already raised the idea of receiving a licensing fee from AI companies for accessing content.
Robert Thomson, CEO of News Corp, says someone should be paying for the content being fed into AIs.
“Clearly, they are using proprietary content, there should obviously be some compensation for that,” he told analysts.
“A lot of these engines are focused on synthesising aggregated content, often our content. And they would argue that by synthesising it and extracting the essence of the content, they're providing a transformational service; we would argue that they wouldn't be able to provide any service without our content.”
The threat lies in others using the technology to create media companies.
AI could provide real-time information, answer questions and deliver personalised recommendations based on preferences and search history, directing potential buyers straight to the agent/car dealer/job poster website, and potentially bypassing the portal.
“We see potential for AI-enabled platforms to pose a similar risk to advertising spend, where advertisers may choose to advertise on such platforms,” write the analysts.
“There is the potential for AI-supported platforms like ChatGPT to detract audiences away from sites/platforms directly owned by media organisations.
“Reduced audiences/time spent on platform reduces a media owner's ability to monetise their content effectively.
“This could pose a greater risk to news and information media services as opposed to entertainment services like audio/TV/streaming.”
Media agencies are taking a hard look at AI.
Pearman has dived in to ChatGPT already, with "favourable, if not impressive" results
Media analyst Steve Allen, Pearman's director of strategy and research: "AI/ChatGPT at this moment is more aligned to process, not true creativity, nor interpretation of facts/statistics/numbers. It seems certain AI will go a long way there is a short space in time.
"For our industry, there are definite applications right now, other than those this thoughtful paper from Morgan Stanley points out ... on the content side. For example… in examining things like large scale research data, for example ABS data, which presently is not a key feature of the ABS data provision.
"I can imagine use in creating product data, brochures, technical literature, even base copy.
"This has the potential to revolutionise many processes in our small patch of commerce.
"However true creativity, lateral thinking, and the like, will remain largely a human activity. But the gap will close significantly.
"As an industry we would be crazy not to commence experimenting now."
Creators are taking a cautious approach.
The union for journalists, the MEAA, says AI has the potential to enhance and extend the work of journalists but there are also many risks associated with its adoption by media companies.
The journalists say media companies should not use AI generated tools to compromise ethical standards nor reduce employment opportunities for journalists and must be transparent with their audiences about the use of such tools.
The MEAA has formed a committee to provide ongoing consideration of the impact of evolving technology.
The union is encouraging publishers and broadcasters to direct efficiencies introduced by AI into expanding original coverage and addressing poorly-served sectors and communities.
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