Media executives these days must contend with constantly evolving consumer behaviours in response to the digital transformation, which in turn lead to changing revenue streams and business models.

Now, they also have to navigate the swift rise of generative AI, which some suggest could potentially radically alter newsrooms.

“There will be changes. No one is complacent in this. There’s a real restlessness about innovation,” David Rhodes, executive chairman of Sky News Group, told attendees of the INMA World Congress of News Media in London last week.

“GenAI will be in active use in so many ways,” he added. “People are already using it in ways that [the public] maybe don’t see.”

Michael Boggs, chief executive officer of NZME in New Zealand, also firmly believes in the potential of AI for his media organisation. Specifically, AI will be implemented on NZME radio, using a “human-trained voice.”

“There are 200 minutes of traffic news [on the radio] each week, which are monetised through ads,” Boggs said. “AI will be used for that.”

The use of AI voices will then be gradually expanded to also include the weather, among other things, he explained. NZME also uses AI to create news stories out of stock exchange announcements, Boggs said: “We’ve had huge engagement [with these stories]. It’s more interesting than a boring announcement.”

Addressing public scepticism of AI

The general public is wary about the emergence of AI.

“Only 8% of Britons think AI is a force for good,” Katie Vanneck-Smith, chief executive officer of Hearst UK, said. “We have to do a better job from an educational perspective [informing the public about the positives of AI]. We have to take consumers with us.”

Rhodes agreed: “The conversation around AI has a bit too much pessimism. Too much risk, fear, and danger. There isn’t enough talk about opportunities.”

Rhodes said the use of AI “should allow us [media companies] to connect to audiences better. It should give people the news products from us that they’re looking for.”

Threats of AI and the importance of the “human factor”

In contrast, Mirja Cartia d’Asero, chief executive officer at Il Sole 24 Ore in Italy, was more cautious, also pointing out the potential negatives of AI, including the threat it could pose for employment.

“We have to be honest that GenAI is a tool that can replace many jobs,” Cartia d’Asero said. “Otherwise, we would be lying.”

She also pointed out the potential danger AI could present to democracy: “Democracy can be killed by AI information only… it may die out of misinformation and disinformation.”

Cartia d’Asero further noted it is us humans that ultimately have the final say in how AI will be used — and in combating its potential downsides.

“It’s very important to have rules around AI,” she said. “[At Il Sole 24 Ore], we have enacted a self-rule AI code. I’m not all pessimistic about using AI, but trust in journalism is reliant on the human factor. It is now more important than ever to have the human factor and trust at the heart of journalism.”

Vanneck-Smith equally emphasised the importance of the human side of journalism: “Humans win over machines in terms of what people end up choosing. Humans like a beginning, middle and end. It’s about authenticity. I always come back to authenticity vs. artificial, humans vs. machines. Humans will seek other humans.”

The business of media today

But adapting to GenAI and other digital tools is not the only concern for media executives at the moment. They also face political and economic instability.

“We have one certainty and that is uncertainty for geopolitical and macroeconomic reasons,” Cartia d’Asero said.

Nevertheless, her company is coping well with the changing media and political landscape. It has a range of revenue streams, including 40% from publishing, 40% from advertising, and 20% from other businesses. Its parent company now also makes 25% of overall revenue from professional services, providing tools and databases for a variety of professions, including lawyers, public servants, and doctors.

Asked about her shareholder’s current thoughts about the organisation, Cartia d’Asero said: “They know the dark days are behind us. We have been more profitable the last three years.”

To the same question, Vanneck-Smith responded: “The [shareholders’] main concern is that we continue to be a cash-generative business.”

She believes the 16 different brands underneath parent company Hearst can continue to grow: “Every single one of my brands is smaller today as a business than the brand itself. There is opportunity to unlock those brands.”

Vanneck-Smith suggested that due to magazines being late toward transforming digitally, they can now apply the lessons others have learned from digitalisation and use that to their advantage: “Magazines are very late to the digital opportunities. This is a benefit because we can leapfrog.”

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