Why AI search could break the internet

The AI search revolution and its legal implications: News Corp’s lawsuit against Perplexity AI for copyright infringement has brought to light the broader challenges posed by AI search engines to the digital economy and content creation ecosystem.

• The lawsuit highlights the potential disruption caused by AI search tools like Perplexity, Google’s Gemini, and OpenAI’s SearchGPT, which summarize information from websites, potentially reducing traffic to original sources.
• This legal action underscores the growing tension between AI companies and content creators, as the former leverage vast amounts of online information to power their search capabilities.

Limitations of copyright law in addressing AI search challenges: The current legal framework may not be sufficient to protect content creators from the impacts of AI search engines, as copyright law does not extend to facts or information.

• Copyright law primarily protects original expression rather than factual content, leaving a significant gap in addressing the concerns raised by AI-powered information aggregation and summarization.
• This legal limitation has prompted discussions about the need for new regulatory approaches to ensure fair compensation for content creators in the age of AI search.

Government intervention and media bargaining codes: In response to the challenges posed by AI search engines, governments may consider implementing new laws, such as media bargaining codes, to regulate the flow of value between content producers and aggregators.

• Australia’s News Media Bargaining Code, which requires tech giants to negotiate payment deals with news outlets, serves as a potential model for such regulation.
• However, these approaches have limitations, as they may not adequately address the needs of smaller content creators or the diverse range of online information sources.

The AI industry’s window of opportunity: AI companies face a critical juncture where they must develop fairer reward systems for content creators before governments impose their own solutions.

• The current deals between AI firms and select publishers are insufficient, as they neglect the vast majority of online creators who contribute valuable information to the web.
• There is a pressing need for AI companies to invest in comprehensive frameworks that can reward all types of content creators, not just major publishers.

Potential consequences of inaction: If AI companies fail to address the issue of fair compensation for content creators, governments may step in with their own regulatory solutions, which could have unintended consequences.

• Government-imposed solutions may not align with the interests of the AI industry or the broader online ecosystem, potentially hindering innovation and the free flow of information.
• Proactive measures by AI companies are crucial to avoid potentially detrimental regulations that could reshape the digital landscape.

The need for comprehensive reward systems: To address the challenges posed by AI search engines, more inclusive and fair reward systems for content creators must be in place.

• These systems should aim to compensate not only major publishers but also individual bloggers, small businesses, and other content creators who contribute to the wealth of information online.
• By developing such frameworks, AI companies could potentially mitigate legal challenges and foster a more sustainable digital ecosystem.

Balancing innovation and fairness: It’s important to strike a balance between leveraging AI capabilities for improved search experiences and ensuring fair compensation for the creators of the content that powers these systems.

• This balance is crucial for maintaining a healthy online ecosystem where content creation remains viable and rewarding, even as AI search technologies advance.
• Failure to achieve this balance could lead to a decline in the quality and diversity of online content, ultimately undermining the value of AI search engines themselves.

Broader implications for the future of the web: The outcome of this debate over AI search and content compensation could have far-reaching consequences for the structure and functioning of the internet.

• The resolution of these issues will likely shape how information is created, shared, and monetized in the digital age, potentially transforming the business models of content creators and tech companies alike.
• As AI search capabilities continue to evolve, the need for innovative solutions that benefit both technology companies and content creators becomes increasingly urgent to ensure a sustainable and diverse online information ecosystem.