News Corp says media is a valuable ‘input’ for AI as USm content deal inked with Meta

News Corp, the global media conglomerate led by Rupert Murdoch, has recently signed a significant content licensing agreement with Meta, the parent company of Facebook and Instagram. This deal, valued at up to US$50 million (approximately A$71 million) per year, allows Meta to utilize News Corp’s content from its publications in the United States and the United Kingdom for training artificial intelligence (AI) systems.

AI as an Input for Media

During a recent presentation, News Corp’s chief executive, Robert Thomson, emphasized the importance of news organizations as a vital “input” for AI technologies. He stated that the reliable breaking news and information provided by outlets such as The Australian, The Times of London, and Dow Jones is invaluable for AI training. Thomson described News Corp as “essentially an input company,” likening its role in the media landscape to that of semiconductors and energy in technology and industry.

The Meta Deal

The agreement with Meta is expected to last for at least three years and allows the tech giant to scrape content from News Corp’s various publications, including The Wall Street Journal and the New York Post. However, some of News Corp’s Australian mastheads, such as the Daily Telegraph and the Herald Sun, are not included in this deal.

Thomson explained that while there are risks associated with the rise of AI, the opportunities it presents for news organizations are even greater. He adopted a “woo or sue” approach, indicating that he welcomes partnerships with AI companies but is prepared to take legal action if they misuse or illegally access the publisher’s content.

Engagement with AI Leaders

Thomson has established a rapport with key figures in the AI industry, including Sam Altman, the CEO of OpenAI, and Mark Zuckerberg, the CEO of Meta. He mentioned that he frequently communicates with both leaders, highlighting the collaborative potential between media and technology companies.

Challenges Facing News Media

Despite the positive outlook on AI, News Corp has also faced challenges in the evolving media landscape. In Australia, the company has taken a more confrontational stance against social media platforms, attributing social cohesion issues to their influence. Michael Miller, the executive chair of News Corp Australia, has called for a unified response from media organizations against platforms and AI companies that seek content without proper compensation.

Embracing AI in Journalism

News Corp has not shied away from integrating AI into its own journalism practices. The Australian division has developed an in-house AI tool called “NewsGPT,” although some journalists have expressed concerns about its implications for the profession. The broader media industry has viewed the integration of AI into search engines as a potential threat to the sustainability of professional journalism, particularly as companies like Google incorporate AI into their services, leading to decreased traffic to news websites.

Comparative Approaches to AI

While News Corp has embraced AI through partnerships and internal tools, other publications, such as The New York Times, have taken a different approach. They have opted to pursue legal action against companies like OpenAI and Microsoft for using their content to train generative AI models without permission.

The Future of Media and AI

As the landscape of media continues to evolve with the rise of AI, the relationship between news organizations and technology companies will likely remain complex. News Corp’s strategic partnerships and its proactive stance on AI integration may serve as a model for other media entities navigating this new terrain.

Frequently Asked Questions

Note: The integration of AI in media presents both opportunities and challenges, and the evolving relationship between news organizations and technology companies will shape the future of journalism.