The recent #beBeta Congress in Berlin brought together over 300 attendees from German and Austrian publishers to grapple with the complex relationship between artificial intelligence and the future of news.
Over two packed days, the industry wrestled with its “love & hate” relationship with AI. We unpack both sides below.
AI: The Love Affair (87% are Convinced it Helps)
The prevailing sentiment regarding generative AI at #beBeta was positive.
87% of respondents are convinced that generative AI strengthens their company’s competitiveness, according to the BDZV trends study presented by Andreas Schmutterer. This enthusiasm is translating into practical applications, with most use cases currently centered around text and audio.
According to BDZV’s trends study:
- 94% of respondents indicated that they use AI to work with text.
- 63% of respondents use AI for audio tasks. Notably, for 3% of respondents, AI not only assists with audio tasks but also handles 100% of the work.
This optimistic outlook was underscored by presentations on practical cases of AI adoption.
Georg Burtscher (Managing Director, Russmedia Digital) shared examples of how AI can generate tangible productivity gains. For instance:
- AI has been used to automate the monitoring of print publications for customer advertisements. This resulted in a 95% productivity increase for this task.
- AI in email management achieved 90% automation in analyzing incoming back-office emails.
- Integrating AI into Content Management Systems and article archives is leading to “significant time savings in editorial, potentially exceeding 50% for some tasks”.
Similarly, Margret Seeger (Group Head of AI at Rheinische Post Mediengruppe) offered a practical “cheat sheet” on how they organized themselves to embrace AI, emphasizing the crucial role of “top-down commitment” from management. This commitment means AI is considered a “fourth pillar” in the company’s management goals.
AI: The Poisoned Gift (CTR down by 32.5% on mobile since AI overviews)
Despite the clear benefits, a palpable concern regarding AI’s disruptive potential also permeated the discussions.
Competition lawyer, Thomas Höppner, demonstrated how the use of AI Mode, a recent update rolled out by Google in the US, will “hide publishers’ work even further away from the reader”. He further highlighted OpenAI’s plans to launch “Super Assistants,” which are expected to provide comprehensive AI-generated answers directly instead of search results.
Höppner flagged a “worrying downward trend in click-through rates to source websites since the launch of AI Overviews”. He cited an example of the Daily Mail, where the average click-through rate for search queries is now 32.5% lower on mobile and 43.9% lower on desktop when an AI Overview is present.
This “Zero Click” phenomenon, where users obtain information without visiting the original source, threatens traditional advertising and subscription revenue models.
AI: The Innovation Catalyst?
An interesting effect of the omnipresence of AI is an even more renewed urgency and appetite for innovation in the sector. It’s the feeling of “this train, we cannot miss ” as Thomas Schultz-Homberg (CEO Kölner Stadt-Anzeiger Medien) put it.
Publishers are setting up new teams to explore internal use of AI and are leading “culture sessions” about the use of AI in the newsrooms that are surprisingly well attended. It is refreshing to hear product teams talking more about the way AI tools are/can be incorporated rather than the resistance to digital adoption, which used to dominate many talks.
Initiatives among publishers, lawyers, and governments are being drafted to lobby for the rights of journalism and for a “fundamental reform of the law, combining copyright and competition (antitrust) law, to create a ‘must carry and must pay’ obligation” as brought by Thomas Höppner. The “NATO for news” concept emerged at the Enders Analysis Summit in the UK this week as well.
But perhaps most importantly, there is a renewed attitude that direct relationships are key and a more explicit focus on building products where the publishers’ brand is central. Mobile apps will play a crucial role in this shift, much more than web presence.
Other key learnings
Double-Digit Digital Growth in Germany: The BDZV trends study revealed a double-digit growth in digital revenues for German publishers. Both ePaper and paid content are experiencing growth in circulation and advertising. Specifically, ePaper subscription numbers are projected to increase by +13% and sales revenue by +15%. Paid content is also expected to see a +14% increase in sales revenue and a +10% increase in advertising revenue.
The event highlighted that around 2.9 million ePaper copies are sold per publication day, and “every 5th sold newspaper is a digital edition – the trend is rising”. Digital revenue from ePaper sales reached 538 million Euros, up from 499 million Euros in the previous year.
Content Distribution as a Driver: Julia Tran of Mediahuis Aachen explained how her team created a separate “content distribution” unit, distinct from content production. This strategic split is considered one of the key drivers that led to 22K subscribers in their region. Mediahuis Group is aiming for a “print/digital turnaround” by 2030, targeting a 70/30 split towards digital.
National Security Perspective on Disinformation: A first for many at a news industry conference was the perspective offered by Sönke Marahrens from Germany’s Armed Forces Department. He brought crucial insights on the dangerous effects of disinformation from a national defense point of view, adding a vital layer to discussions on media responsibility.
The Ever-Evolving Nature of Transformation: “Transformation never ends” was a powerful quote from Birte Hackenjos that resonated deeply with many attendees, underscoring the continuous need for adaptability in the digital age.
The conversation continues in Stuttgart on October 14th!
How we can leverage AI to shape the future of news is a central theme of the Digital Growth Summit in Stuttgart on October 14th. In an intimate conference context, you can join honest talks about the fundamental strategic shifts that AI brings. Register by June 30th and enjoy a summer read on us—choose a title from the Twipe library as a thank-you gift.
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