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How should web content providers survive in the AI era?

Introduction

Lately, the world has seen a surge in generative AI technologies, influencing not just the IT industry with giants like MS Bing and Google Bard, but also extending their reach to various other sectors. For engineers like myself, this has led to a significant reduction in time spent searching for information and learning new concepts. Although reviewing generated content now takes longer, I anticipate this will improve as AI evolves.

As we navigate these changes, there’s a growing sense of both excitement and apprehension surrounding AI’s potential. Personally, I see these developments as unavoidable and maintain a positive outlook on our ability to tackle the challenges they present. Nonetheless, as an engineer, I can understand the concerns of those who fear AI may jeopardize their expertise in the future.

Moving beyond the realm of sci-fi, AI’s increasing presence raises several critical issues to consider:

  • Copyright implications of AI-generated data and learning materials
  • Ethical aspects of AI-generated data
  • The risk of harm from inaccurate information generated by AI
  • And more

In this post, I’ll focus on exploring the decline in web content quality and the potential monopolization of information stemming from AI’s rapid advancement.

The Challenges Faced by Web Content Providers in the Age of AI

A major source of revenue for most web content providers, including both small and large companies like Meta and Google, is advertising. However, if AI starts to scrape and deliver content directly to users, bypassing the need to visit websites, it’s likely that people won’t be exposed to the ads that support these providers.

I mentioned Google and Meta as examples, but in reality, large portal sites may not face significant issues. People tend to directly visit major sites like news portals for their needs. Even with AI’s advancements, these large portals are likely to maintain stable advertising revenue as before. The real challenge lies with small content providers who lack the content competitiveness necessary for direct access and rely heavily on search engines for the majority of their traffic.

As AI advances in the search market, content-related information sites consequently may struggle to generate revenue, leading to a lack of funds for producing meaningful information. This, in turn, could cause the quality of information to deteriorate, ultimately impacting the profits of smaller content providers and potentially forcing them out of business.

Without adequate incentives, such as providing a portion of fees to the original information sources, small content companies may suffer from declining profits and eventually go bankrupt. This could lead to a situation where the internet is primarily dominated by platforms like YouTube and large-scale portals, resulting in a monopolization of information.

Ironically, the internet initially emerged as a means of democratizing information, but as technology advances, it appears that information monopolization is becoming an increasingly prominent concern.

What are possible solutions to save tiny content providers?

So, what potential solutions can be considered to address this issue faced by small content providers?

  1. Subscription models: Content creators can adopt subscription models that offer ad-free, high-quality content to paying subscribers, generating revenue while decreasing reliance on advertising.
  2. Micropayments: By implementing a micropayment system, users can pay small amounts for individual pieces of content, supporting content creators without relying on ads.
  3. Crowdfunding and patronage: Content creators can utilize crowdfunding platforms like Patreon or Kickstarter, enabling fans to support them directly on a recurring or project-by-project basis.
  4. Collaborations and partnerships: Small content creators can collaborate with other creators or form partnerships with larger organizations to share resources, cross-promote content, and increase visibility.
  5. Sponsored content and affiliate marketing: Creators can collaborate with brands to develop sponsored content or participate in affiliate marketing programs, generating revenue without relying solely on traditional display advertising.
  6. Licensing and syndication: Content creators can license their content to other platforms or enter into syndication agreements, receiving a fee for allowing their content to be republished or used by third parties.
  7. Diversifying revenue streams: Creators can diversify their income by offering additional products or services, such as merchandise, online courses, or consulting services, related to their content.

Despite these potential solutions, it’s unclear which one, if any, will prove most effective. The subscription model seems the most feasible; however, it’s unlikely that small content providers can compete with larger providers in terms of price or convenience. In this sense, the subscription model may not be the ideal solution.

The advertising revenue model has historically catered to people’s preferences for free content. Instead of explicitly charging users, this model implicitly consumes their time by exposing them to ads. It might be up to major players like Google to devise new solutions, such as transferring a portion of revenue to content providers when their information is referenced by AI. If no solution emerges, the quality of web content could deteriorate in the long run.

Conclusion

Given Google’s prominent role in the Internet advertising market and its expertise in AI, it’s reasonable to expect that the company could play a crucial role in shaping the future of web content. Historically, Google created the current web content ecosystem, starting with Google AdSense, and has the resources, knowledge, and influence to develop innovative solutions that not only ensure the survival of small content providers but also maintain the quality and diversity of information available on the web.

However, ultimately the responsibility for addressing these challenges extends beyond Google and other major players in the tech industry. It’s essential for content creators, policymakers, and users alike to engage in an ongoing dialogue and collaborate to ensure that the democratization of information, which lies at the heart of the internet, remains a core value in the AI era.

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