Media companies, facing a challenging market environment, are turning to generative artificial intelligence (AI) technology to reduce costs and create new revenue streams. Executives from BuzzFeed Inc., Dotdash Meredith, Gannett, and The Arena Group discussed their AI strategies during recent Q4 earnings calls. They highlighted the potential of generative AI to streamline content creation, attract brand sponsors, and optimize workflows. These discussions occurred amid disappointing advertising revenue results for the fourth quarter.
Daniel Kurnos, an internet, broadcasting, and media analyst at investment banking firm The Benchmark Company, noted that automation’s potential to replace human labor and its impact on revenue and cash flow were central themes. While executives spoke of automating content production and reducing costs, they were vague about the specific financial benefits AI might bring to their companies. Some executives mentioned cautious testing phases, indicating a general wait-and-see attitude towards the technology’s evolution.
The recent earnings calls marked the first time many CEOs identified AI as a means to achieve cost-cutting goals in the wake of last summer’s economic downturn. This coincided with the debut of OpenAI’s ChatGPT, which has become a popular topic for executives seeking to improve their companies’ outlooks.
Joey Levin, CEO of IAC, emphasized the role of AI in driving efficiency in content development and other areas. He also acknowledged the need to evolve alongside the technology, seeing it as a crucial opportunity for innovation.
As advertising revenue declined throughout last year, publishing executives have been eager to find cost-cutting measures. Gannett’s CFO, Doug Horne, mentioned the company’s investments in AI and machine learning tools to simplify routine tasks and create efficiencies. The Arena Group has also announced partnerships with AI firms like Jasper and OpenAI to enhance the productivity of their reporters and editors.
Jonah Peretti, CEO at BuzzFeed Inc., stated that AI-powered content would transition from the research and development stage to a core part of their business. He also highlighted BuzzFeed’s AI-powered Infinity Quizzes as an example of enhancing audience experiences and creating monetization opportunities.
On the content creation front, AI tools have been integrated into BuzzFeed’s content management system, providing more writers with access to AI-generated content. Peretti described the scalability of this initiative as “just starting now.”
The potential impact of generative AI on search engine optimization (SEO) traffic was also discussed. IAC’s Levin acknowledged that new technologies could be both threats and opportunities, pointing out that AI chatbots like ChatGPT might take over the role of traditional search engines. However, Levin maintained that his company has long been prepared for shifts in search engine traffic, adapting to a reduced reliance on SEO-driven content.
