We also laid out four paths for media companies to navigate the AI era. Path 1 — becoming a data supplier to AI will surely lead to self-disintegration. Path 2 — building your own AI layer is unlikely to be economically viable for most, except the largest media companies. This is similar to Google’s strategy with Gemini: building an AI layer to ensure its search platform is not disintermediated. For most publishers, Path 3 — original journalism — is most rational and is possible, but unlikely on its own to be sustainable. Publishers that also achieved Path 4 — turning its brand into identity — will define success and failure, but only a very few will succeed as the source of trust and truth. Like the thousands of luxury brands, but only a few succeed, as curators of scarcity.
"The future of media in the AI age (Part 7)”, published last week, was likely to have been too theoretical and abstract, maybe even futuristic, to many readers. But the fact is that artificial intelligence (AI) is already here and will hugely impact media. Those media companies that successfully navigated the challenge from social media may not all be also successful navigating AI.
The AI challenge will be even more profound and existential. AI can do away with source providers and platforms since the interface itself is intelligent. If your customers do not even need to know you, how do you build a relationship with your customers? Without owning your customers, you have no pricing power.
