MailOnline chief warns AI ties not enough to 'save industry'

The New York Times is suing OpenAI for copyright infringement in the US, but others have signed licensing agreements. Photo: ANGELA WEISS/AFP via Getty Images

MailOnline's chief has warned that the newsroom's ties to artificial intelligence (AI) companies «will not be enough to save the industry» as he raised concerns about tech giants stealing web traffic sites.

Rich Caccapolo, chief executive of Lord Rothermere's DMG Media, told a meeting of media industry executives in London that the rise of artificial intelligence-powered internet search could be «devastating» for some publications.

Publications are exploring partnerships with technology companies amid concerns that readers may look for summaries of stories generated by artificial intelligence, rather than news published by independent media.

It comes as some publishers criticize artificial intelligence companies for harvesting information from newspapers. content to teach their technology.

The debate led to the New York Times suing OpenAI for copyright infringement in the United States, which called the case «meritless.»

Mr Caccapolo, who was appointed chief executive of DMG Media in 2021, told a conference organized by Deloitte and Enders Analysis that the rise of «generative artificial intelligence answering questions in search» would lead to «traffic siphoning» from news publications.

Speaking on a panel alongside The Telegraph chief executive Anna Jones, as well as senior executives from The Sun and ITN, he said: “This will be devastating for some publishers who are very reliant on search.”< /p>

Regarding recent licensing agreements, he added: “I fear that whatever payments are made, they will not be enough to save the industry — or many of its participants.”

Mr Caccapolo's comments come as DMG Media, which owns MailOnline, The Daily Mail and The Mail on Sunday, is increasingly investing in MailPlus, a paid product aimed at increasing subscriber numbers.

This is contradictory home page of MailOnline, which generates large amounts of online advertising revenue and is available for free.

Other newspaper groups, including The Telegraph, have moved to a paywalled internet model in recent years to survive declining income from printing and advertising.

Mr Caccapolo said MailOnline was less reliant on Google search than some of its competitors and argued that readers often went directly to its website or app: «If you don't have a direct traffic, you have serious problems.»

Meanwhile, Anna Bateson, chief executive of Guardian Media Group, said she was willing to enter into a licensing agreement with OpenAI, but only on the right terms.

She said: “Tech companies seem to believe that they are exceptional in some way and that they do not need to be paid.”