The traditional journalism model is among the hardest hit by the massive migration to the internet. Much of the advertising revenue vanished, and newsrooms significantly reduced their workforce in the face of the now dominant digital model. In an attempt to compensate for the battered traditional journalism, California representatives negotiated a news funding deal with Google.
The deal, which will extend for the next five years, involves total funding of up to $180 million for local journalism initiatives. Google will contribute $110 million, while the state will take care of the other $70 million. Oakland Democrat Buffy Wicks is the main driving force behind the deal. Most of the funds would go to local newsrooms in California.
The news funding deal between Google and California includes AI tool development
However, there is one controversial point in the agreement. As reported by POLITICO and The Information, $70 million would be allocated to the development of AI-powered tools. The development would be handled by a nonprofit organization for greater transparency. Wicks calls this part of the deal the “National AI Accelerator,” and its goal would be to work on tools that do not undermine the work of journalists. The report gives as an example the CalMatters’ Digital Democracy program used to track state legislation.
It’s no secret that journalism is not the segment most enthusiastic about artificial intelligence. Many feel that these tools directly attack their work, and could even replace them. However, it seems that the news funding deal between Google and the state of California regarding AI is going in a different direction. The deal does not require a change in legislation, which will speed up its implementation. Wicks says that trying to force such changes through new legislation could lead to lengthy processes that would not benefit either party.
Some California Democrats consider the figures “insufficient”
The funding for AI development was not the only thing that generated controversy. Other Democratic legislators feel that the big winner of the deal was Google. Some even question whether the agreed-upon figures are insufficient. “We have concerns that this proposal lacks sufficient funding for newspapers and local media and doesn’t fully address the inequities facing the industry,” said Mike McGuire, California Senate President Pro Tem.
On the other hand, Democratic Senator Steve Glazer sought to push through a parallel bill based on taxing digital ad revenue. The deal generated reactions from more parties related to the sector. The California News Publishers Association defined it as a “first step” towards a sustainable and fair model. Meanwhile, the Media Guild of the West union called it “a total rout.” Matt Pearce, president of the union, said that Google used its “monopoly power” to get its way.
The deal is “the best-case scenario”
In response to the allegations, Wicks claims that the deal reached is the most realistic for the current situation. She said it is “the best case scenario” considering all factors. It’s notable that Google and other big tech companies were against Wicks’ initiative. The Mountain View giant spent $1.1 million on an advertising campaign that called it a “link tax.” The company even temporarily blocked Google News in California for some users. Plus, Google had said that the initiative would encourage clickbait and low-value content on the Internet.
2024-08-23 15:07:06